Transcript Chapter 10
Chapter 10 Leading Change Chapter 10 Leading Change in Organizations 10-2 Learning Objectives • Understand the different reasons for resisting change • Understand the psychological processes involved in making major changes • Understand the different ways that leaders can influence the culture of an organization • Understand the characteristics of an effective vision 10-3 Learning Objectives (Cont.) • Understand how to develop an appealing vision for the organization • Understand how to implement a major change in an organization • Understand the characteristics of a learning organization • Understand how leaders can increase learning and innovation in organizations 10-4 Organizational Change • The activities associated with planning, designing, implementing, and internalizing, tools, procedures, routines, processes, or systems that will require people to perform their jobs differently. Types of Organizational Change • • • • Changing attitudes Changing work roles Changing technology Changing strategy The Change Process • Force-field model: Unfreezing Changing Refreezing • Two-forces at work: Driving forces Restraining forces Eight-Stage Model 1. 2. 3. 4. 5. 6. 7. 8. Establish sense of urgency Form powerful guiding coalition Develop a compelling vision Communicate the vision widely Empower employees to act on the vision Generate short term-wins Consolidate gains Institutionalize changes in the organizational culture Changing Culture • • • • • • • • • • Attention Reaction to crisis Role modeling Allocation of rewards Criteria for selecting and firing members Design of systems and procedures Design of organizational structure Design of facilities Stories Formal statements Reasons for Resistance to Change • • • • • • • • Lack of trust Belief that change is unnecessary Belief that the change is not feasible Economic threats Relative high cost Fear of personal failure Loss of status and power Threat to values and ideals Why people resist to change • Learning anxiety • Uncertainty • Lack of confidence that change will be successful • Distrust of leadership • Fear of being manipulated Stages in the Change Process • Lewin’s Force-Field Model – Unfreezing – Changing – Refreezing • Response to Repeated Traumatic Change – Leaves people less resilient and more vulnerable – Leaves people inoculated and better prepared to deal with change 10-12 Stages in Reaction to Change • Denial – “This isn’t happening.” • Anger – Look for someone to blame. • Mourning – People stop denying that change is inevitable, acknowledge what has been lost, and mourn it. • Adaption – Accept the need to change and go on with one’s life. 10-13 Prior Experience and Reaction to Change • How a person reacts to change depends on: – The person’s general confidence about coping with change successfully – How much change they have previously experienced • Can increase resilience • Can increase stress and frustration 10-14 Different Types of Organizational Change • • • • • Attitude-Centered Change Role-Centered Change Changes in Technology Change in Competitive Strategy Economic or Human Factor Changes • Generic Change Programs 10-15 Systems Models for Organizational Change • • • • 10-16 Problems have multiple causes Actions have multiple outcomes Changes have delayed effects Actions that appear to offer quick relief may make things worse in the long run • The best solution may offer no immediate benefits Influencing Organizational Change • Nature of Organizational Change • Ways to Influence Culture – Leadership Behavior – Programs, Systems, Structures, and Cultural Forms 10-17 10-18 Culture and Growth Stages of Organizations • Founders have strong influence on the organizational culture • More difficult to change culture in mature organizations • In mature organizations, the culture influences the leader more than the leader influences the culture 10-19 Developing a Vision • Desirable Characteristics for a Vision • Elements of a Vision – Mission Statement – Value Statement – Slogan – Strategic Objectives – Project Objectives 10-20 Procedures for Developing a Vision • Involve key stakeholders • Identify strategic objectives with wide appeal • Identify relevant elements in the old ideology • Link the vision to core competencies • Evaluate the credibility and refine the vision •10-21Continually assess and refine the vision Implementing Change • Responsibility for Implementing Major Change – Support from top management • The Pace and Sequencing of Changes 10-22 – Rapid versus gradual introduction of change – Change interdependent subunits simultaneously 10-23 Innovation and Organizational Learning • Internal Creation of New Knowledge – Internal departments – Pilot testing new ideas • External Acquisition of New Knowledge 10-24 – Best practices – Hiring outsiders – External consultants Innovation and Organizational Learning (Cont.) • Knowledge Diffusion and Application – Information systems – Written or electronic documents – Special purpose conferences – Seminars and workshops • Learning Organizations 10-25 Guidelines for Increasing Learning and Innovation 10-26 • Encourage appreciation for flexibility and innovation • Encourage and facilitate learning by individuals and teams • Help people improve their mental model • Leverage learning from surprises and failures Guidelines for Increasing Learning and Innovation (Cont.) • Encourage and facilitate sharing of knowledge and ideas • Set innovation goals • Reward entrepreneurial behavior 10-27 Guidelines to overcome resistance to change • • • • Show support and commitment Communicate the need for change Maintain ongoing communication Empower people and avoid micromanagement • Ensure that change efforts are adequately staffed and funded • Anticipate and prepare people Guidelines to overcome resistance to change • Assemble a coalition of supporters • Align structure with strategy • Fill key positions with competent supporters • Recognize and reward contributions • Use teams and task forces when necessary