Transcript Chapter 14 Managing Change Managing Change      Change is a critical uncertainty facing the organization, and the ability to manage change is a valuable skill. Organizations.

Chapter 14
Managing Change
Managing Change
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Change is a critical uncertainty facing the
organization, and the ability to manage change is a
valuable skill.
Organizations are becoming more change-oriented,
responding to various forces in increasingly
dynamic environments.
Change is difficult, and may not always be good.
Change may often be necessary, but it may also be
painful.
People may differ in the degree to which they
resist change and in their motivations to change.
Forces for Change
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Some external forces for
change:
 globalization
 the growing diversity of the
workforce
 the explosion of the
Internet
 new legislation
 changing customer desires
and expectations
 heightened levels of
competition
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Some internal forces for
change:
 performance gaps
 new leadership
 a new mission
 employee pressures
Planned Versus Reactive Change
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Managers can respond to change either by
planning or reacting.
Planned change occurs when managers
develop and install a program that serves to
alter organizational activities in a timely and
orderly way.
Reactive change occurs when managers
simply respond to the pressure for change
when that pressure comes to their attention.
Planned change is typically regarded as
superior to reactive change.
The Change Process -- Lewin’s Change
Model (Figure 14-1)
Phase 1
Unfreezing
• Create High
Felt Need for
Change
• Minimize
Resistance to
Change
Phase 2
Changing
• Change
People, Tasks,
and Structure
• Encourage
Ongoing
Support
Phase 3
Refreezing
• Reinforce
Outcomes
• Constructive
Modification
Targets of Change
(Figure 14-2)
Structural
Technological
Purpose or Task
Human
Web Wise: Robot Information Central
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The installation of robots is a
good example of technological
change.
For a huge listing of robotic
links, go to Robot Information
Central at the website of Arrick
Robotics.
http://www.robotics.com/robots
.html
Sources of Resistance to Change
(Figure 14-3)
Uncertainty
Self-Interest
Resistance
to Change
Habit
Rejection of
Change
Source
Lack of
Understanding
and Trust
Differing
Perceptions
Lack of
Tolerance for
Change
Focus on Management: Trust Building
at Eastman Chemical
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Earnest Deavenport, CEO of Eastman Chemical,
credits the company’s substantial success to the
way in which Eastman has retooled the
traditional contract between company and
employees.
One element of Eastman’s trust-building strategy
is an incentive and compensation system,
Eastman’s Performance Plan, that encourages
employees worldwide to become stewards of the
company.
Through the system, Eastman employees will
soon own 20% of the company’s stock.
Lighten Up: Bad Fads
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While change is often desirable, people
may implement change for questionable
reasons.
For example, some change efforts are
essentially impression management,
attempts to give the appearance of
progress or to detract attention from other
problems.
In addition, change may sometimes take
the form of blindly following fads.
Check out the Bad Fads museum at:
http://www.badfads.com
Change Approaches
(Figure 14-4)
Tactic
Education and
Communication
Participation and
Involvement
Facilitation and
Support
Characteristics
Explaining the need for and the logic of
the change
Having members participate in the
planning and implementation of change
Gradual introduction of the change
process and provision of support to
people affected by the change
Negotiation and Negotiating or bargaining to win
Agreement
acceptance or reduce resistance to
change
Manipulation and Covertly steering individuals or groups
Co-optation
away from resistance to change
Coercion
Demanding that members support the
change or be threatened with the loss
of rewards and resources
The Rhetorical Triangle
(Figure 14-5)
Logos
Pathos
Ethos
Logos
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Logos refers to convincing another person to
accept change through reason, logic, and data.
When people are told about a change at work
that will affect them, they normally first react
by asking “Why?”
When you initiate change, be prepared to
provide a clear rationale in a direct, wellsupported manner, using education and
communication as your persuasive method.
Logos Guidelines
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Do your homework, gathering relevant facts
that prove that a real problem exists.
Identify sources of help.
Anticipate questions and objections.
Sell the benefits of the change in terms of the
perspective of those who will have to go
through it. It is easiest to sell the need for
change when there is a “burning platform.” A
burning platform is a dramatic, vivid
demonstration that the current situation is
unacceptable.
Logos Guidelines (Continued)
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Use catalytic mechanisms to reinforce the
change; catalytic mechanisms help to translate
objectives into performance by making “stretch”
goals reachable. They generally involve a
dramatic policy that requires people to act in
new ways that further the overarching goal.
Listen in depth to concerns, questions, and fears.
Create an implementation plan that answers the
key questions most people have when faced with
change: who, what, where, when, why, and how.
Wingwalking
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General Dennis Reimer, the U.S. Army’s Chief of
Staff, explained that the army is now in a
different world and has to be able to change to
serve the nation’s needs.
He noted that the army is a conservative
organization that believes in “the first rule of
wingwalking: You don’t let go of what you’ve got
in your hands until you’ve got something else in
your hands.”
As such, change can best be “sold” when the
present situation is unacceptable and there is
something else to hold on to -- some promising
new beginning.
Short Pay at Granite Rock
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The copresidents of Granite Rock, a century-old California
company that sells crushed gravel and related products set an
audacious goal: Granite Rock would provide total customer
satisfaction and achieve a reputation for service that met or
exceeded that of Nordstrom.
To achieve this goal, Granite Rock implemented a radical new
policy: “short pay.” Every Granite Rock invoice contains the
words, “If you are not satisfied for any reason, don’t pay us for
it. Simply scratch out the line item, write a brief note about the
problem, and return a copy of this invoice along with your
check for the balance.”
The policy impells managers to identify the root causes of
problems to prevent repeated short payments.
It also signals to employees and customers the sincerity of the
company’s commitment to customer satisfaction.
Ethos
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Ethos refers to convincing another person to accept a
change through the strength of your moral character and
the trust that followers have in you.
People tend to cooperate with a leader who has high
credibility, a combination of competence and
trustworthiness.
When faced with a persuasive argument, the audience
asks, “Does this person know the truth?” They ask if the
person is informed, skilled, and intelligent.
They also ask, “Does this person tell the truth?” To
answer this, they consider the person’s trustworthiness:
one’s character, moral fiber, and personal integrity.
Pathos
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Pathos refers to convincing others to accept a change
through appeals to emotional and psychological
needs.
One effective way to satisfy people’s emotional needs
and to stimulate high motivation is to get them
actively involved in the change itself.
When people feel they have had a voice and a hand in
shaping the change and its implementation, they tend
to adopt ownership of it.
Using participation in planning and implementing
changes enriches people’s work, raises self-esteem
and self-confidence, and hones problem-solving skills.
Deciding When to Use the Change
Approaches (Figure 14-6)
Tactic
Best Used When
Education and
Communication
Resistance to change is due to lack of information or
inaccurate information and analysis.
Participation and The initiators of change don’t have all the information
Involvement
they need to design the change, and others have
considerable power to resist.
Facilitation and
People are resisting change because of fear or
Support
adjustment problems.
Negotiation and
Agreement
Manipulation
and Co-optation
Coercion
Someone or some group will clearly lose out in the
change and that party has considerable power to
resist.
Other tactics won’t work or are too expensive.
The initiator of change has power, and change must
occur quickly.
Bottom Line:
Overcoming Resistance to Change
Identify Potential
Sources of Worker
Resistance to a
Change
Involve Workers in
The Design of
The Change
Develop and Implement
A Comprehensive
Communications Plan
For Educating Workers
About the Change
Reinforce the Change
By Realigning Jobs,
Processes, Systems, and
Organization Culture
with the Change
Offer Rewards to
Workers for
Successfully
Implementing a Change
Provide Support for
Workers Who Will Be
Implementing the
Change (e.g., Training,
Budget, Direction)
Managing Difficult Transitions
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Clearly explain the reasons for the transition: Show
how endings ensure continuity.
Explain why the transition is occurring in the way it is
occurring.
Minimize uncertainty: Define what is over and what is
not.
Identify who is losing what.
Acknowledge losses openly and sympathetically.
Expect and accept signs of grieving.
Managing Difficult Transitions (Cont.)
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Provide fair compensation for losses.
Facilitate the coping of those with losses.
Mark the endings.
Treat the past with respect.
Plan for new beginnings.
Signs of Grieving
(Figure 14-7)
Anger
Depression
Bargaining
SIGNS OF
GRIEVING
Disorientation
Anxiety
Sadness
Organizational Development (OD)
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Organizational development (OD) has been
defined as “an effort
(1) planned,
(2) organization-wide, and
(3) managed from the top, to
(4) increase organizational effectiveness and
health through
(5) planned interventions in the organization’s
‘process,’ using behavioral science knowledge.”
OD Assumptions and Values
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People as individuals:
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people in the organization seek to satisfy higher-order needs
people desire to make a contribution to the organization
people have the potential to make a contribution to the
organization
People as group members:
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the nature of group relationships will determine the
satisfaction and contribution of individual members of the
group.
It is important that group members feel that acceptance in
the work group is meaningful and that the group is capable
of generating trust, support, and cooperation among
members.
The nature of the group should be such that members are
capable of acting both as leaders and as followers when
necessary.
OD Assumptions and Values
(Continued)
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People as members of the organization:
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organization structures have an impact on member
attitudes and behaviors
win-lose conflict strategies are not healthy in the
organization
upper management must have a long-term
commitment to change within the organization
The OD Process
Identify a Need for Change
Select a Technique for Change
Gather Top Management Support
Plan the Change Process
Overcome Resistance to Change
Evaluate the Change Process
OD Intervention Techniques
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Diagnostic techniques
Team building
Survey feedback
Education
Intergroup activities
Third-party peacemaking
OD Intervention Techniques
(Continued)
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Sociotechnical activities
Process consultation
Life and career planning
Coaching
Planning and goal setting
Conditions for Successful OD Programs
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Recognition by managers and members that
the organization has problems.
Use of an external change agent to start the
process.
Support from top management for the change
process.
Involvement of work group leaders.
Early success with the change effort.
Understanding of the change process and its
goals.
Conditions for Successful OD Programs
(Continued)
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Support of managerial strengths.
Inclusion of human resource managers in the
OD program.
Development of internal OD resources.
Effective management of the OD program.
Measurement and evaluation of results.
The Learning Organization
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According to Peter Senge, in learning
organizations “people continually
expand their capacity to create the
results they truly desire, where new
and expansive patterns of thinking are
nurtured, where collective aspiration is
set free, and where people continually
learn how to learn together.”
Learning organizations develop
specific learning capabilities not
present in traditional organizations.
Peter Senge
The Five Disciplines of Learning
Organizations (Figure 14-8)
Systems
Thinking
Personal
Mastery
Learning
Capabilities
Team
Learning
Mental
Models
Shared
Vision
The Seven Learning Disabilities
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“I am my position.” People often identify with
their jobs rather than with the larger enterprise.
“The enemy is out there.” We have a tendency to
“externalize,” finding someone or something
outside ourselves to blame when things go wrong.
“The illusion of taking charge.” All too often,
proactiveness is just reactiveness in disguise.
“The fixation on events.” We are conditioned to
see life as a series of events and to believe that
there is one obvious cause for each event.
The Seven Learning Disabilities (Cont.)
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“The parable of the boiled frog.” We often fail to
notice gradual change. It is critical to remain attuned
to the gradual processes that often pose the greatest
threats.
“The delusion of learning from experience.” We
never experience the consequences of our most
important decisions; these have system-wide
consequences that play out over years.
“The myth of the management team.” Members of
management teams, instead of battling these
disabilities, often fight for turf, try to avoid blame,
and work to give the appearance of a cohesive team.
Developing Learning Organizations
Learning
Cultures
Learning
Leaders
Learning
Organizations
Learning
Infrastructures
Leadership
Communities
Bottom Line:
Developing a Learning Organization
Leaders Generate
“Creative Tension” by
Convincing Workers
That a Significant Gap
Exists Between the
Status Quo and a
Future Vision
Leaders Provide
Support for a Wide
Range of Learning
Activities Throughout
Various Units in an
Organization to
Create Learning
Communities
Leaders Help to
Create and Establish
Formal Systems and
Processes to Support
Learning Activities
Throughout the
Organization
Leaders Evaluate the
Performance of
Workers, Units, and
The Organization
Based on LearningRelated Outcomes
Leaders Model
Behaviors That
Support a Learning
Organization and
Foster a Culture
That Values Learning