Transcript Chapter 12 Change and Development

Principles of Management
Organizational
Change
Sometimes change
can be hard!
Boy, you’ll never
get me up there!
Where are Changes Occurring?
Major Types of Change:
Technological
Management Styles
Company Structures
Culture/People
World Economy
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Need for Change
 Based on external or internal forces.
 Performance gap-a disparity between existing and
desired performance levels.
 Performance gap may occur because:
- current procedures are not up to standard.
- a new idea or technology could improve current
performance.
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Who Brings About Change?
Implementing Change
May Require
Creative Culture
Idea Champions
New Venture Teams
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Creative
People
 Open-minded
 Originality
 Less authority,
independence
 Persistence
 A relaxed and playful
attitude
 Persistence, focused
approach
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Idea Champion
A person who sees the need for and champions
productive change within the organization.
Four Roles in Championing an Idea
Inventor
· Develops and
understands
technical aspects of
ideas.
· Does not know how
to win support for
the idea or make a
business of it.
Champion
· Believes in idea.
· Visualizes benefits.
· Confronts
organization
realities of cost,
benefits.
· Obtains financial and
political support.
· Overcomes obstacles.
Sponsor
·High-level manager
who removes
organizational
barriers.
·Approves and
protects idea within
organization.
Critic
· Provides reality
test.
· Looks for shortcomings.
· Defines hard-nosed
criteria that idea
must pass.
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Teams Facilitating Change
New venture team:
 a unit separate from the rest of the organization.
 responsible for developing and initiating a major
innovation.
 teams are typically small.
 loosely structured.
 flexible.
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Model of Change Sequence of Events
Environmental
Forces
Monitor global competition,
customers, competitors,
and other factors.
Internal Forces
Consider plans, goals,
company problems, and
needs.
Strategic
Planning
Evaluate problems and
opportunities, define
needed changes in
technology, products,
structure, and culture.
Initiate
Change
Facilitate search,
creativity, idea
champions, and venture
teams.
Implement
Change
Use force field
analysis, tactics for
overcoming
resistance.
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Organizational Development
Can help managers address:
• mergers/acquisitions
• organizational decline/revitalization
• conflict management
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OD Activities
 Team Building: enhances the cohesiveness and success of
organizational groups and teams.
 Survey Feedback: begins with a questionnaire distributed to
employees on values, climate, participation, leadership, and group
cohesion within their organization.
 Large-group Intervention: brings together participants from
all parts of the organization to discuss problems or opportunities
and plan for change.
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Two Types of Planned Change
Operational Change
based on efforts to improve basic
work and organizational processes.
Transformational Change
involves redesign and renewal of
the total organization.
Using Force Field Analysis to Change
from Traditional to JIT Inventory System
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Resistance to Change
Managers and employees often seem to prefer the status quo.
 Self-Interest: the fear of personal loss is perhaps the
biggest obstacle to organizational change.
 Lack of Understanding and Trust: do not understand
the intended purpose of a change, or distrust the
intentions.
 Uncertainty: the lack of information about future
events.
 Different Assessments and Goals: people who will be
affected by innovation may assess the situation
differently.
Three Distinct Steps for Achieving
Behavioral and Attitudinal Change
•
•
•
•
•
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Unfreezing:
diagnosis stage
participants are made aware of problems in order to
increase their willingness to change their behavior
Changing:
intervention stage
individuals experiment with new workplace behavior
Re-freezing:
reinforcement stage
individuals acquire a desired new skill or attitude and are
rewarded for it by the organization