Organizational Change: Two Metaphors

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Calm Waters (Incremental) White Water Rapids (Radical)

Forces for Change

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External:

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Customers Competitors Technology Economic Social Political International

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Internal:

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Financial Problems

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Production Inefficiencies

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Employee Expectations/ Demands

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Management Goals

Steps in the Organizational Change Process

Assess need for change

Find source of problem

Decide on the change

Identify obstacles

Implement Change

Top-down or Bottom-up

Evaluate Change

Is it successful?

Types of Changes

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Technology Product/Service Strategy/Structure People/Culture (Usually, more than one change at a time)

Technology Change

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Generally, technology change is “bottom-up” Facilitated by “Ambidextrous” approach

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looser structure for innovation than for established activities

Product/Service Change

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Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing) “Bottom-Up after Horizontal-Linkage”

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Horizontal Linkage Model:

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Specialized departments Horizontal linkages Boundary spanning

Horizontal Linkage Model

New-Venture Teams

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Separate unit to develop and initiate innovations

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Small, Organic Relatively free from organizational bureaucracy

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Most effective when placed high in the organizational structure

Strategy/Structure Change

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Mission, General Goals Structural Design, Administrative Procedures, Management Systems Usually “top-down”

People and Culture Changes

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TQM - Total Quality Management OD - Organizational Development

Organizational Development

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Use of behavioral science knowledge to promote people/culture changes such as: Skill Development Attitude Change Teamwork

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OD Can Help Managers Address--

Organizational decline Conflict management Mergers/Acquisitions

OD Techniques

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Individual: Job Training Career Planning Coaching, Counseling

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Group: Sensitivity Training Role Playing Team-building

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The following can include large portions and even the Entire Organization : Survey-feedback Intergroup activities Process-consultation

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Why People Resist Change Personal preference for sameness Fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security Disruption of cultural traditions and/or group relationships

Lewin’s Force Field Analysis: Decision to Engage in Exercise

Forces for Change (Driving) Forces for Status Quo (Restraining) Weight gain Lack of time Minimally passing treadmill test Equilibrium No exercise facility at work Feel lethargic, having no energy Spouse/partner hates to exercise Family history of cardiovascular disease No interest in physical activity or sports New, physically demanding job Made a grade of D in a physical education class.

FORCE FIELD ANALYSIS Driving Forces of Change Restraining Forces against Change Historically good company-union relations Deteriorating company union relations Foreign competition Stringent work rules Recent company losses Current benefit costs Cheaper sources available outside Current pay costs Union desire to save jobs Employee absenteeism levels Company desire for flexibility in layoff decisions Company reluctance to eliminate jobs Current High Cost Level Desired Lower Cost Level

Lewin’s 3-Step Change Model

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Unfreezing Motivate Change (strengthen driving and/or weaken restraining forces) Change Use Effective Change Method Refreezing Solidify the Change

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Unfreezing Communication/Education

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Negotiation/Promise of Rewards Change Participation/Training/

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Coercion Refreezing Reinforce with Resources/Rewards

Lewin’s Change Model

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Unfreezing - Creates the motivation to change - Encourages the replacement of old behaviors and attitudes with those desired by management - Entails devising ways to reduce barriers to change - Creates psychological safety •Changing - Provides new information, new behavioral models, or new ways of looking at things - Helps employees learn new concepts or points of view - Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change

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Refreezing Helps employees integrate the changed behavior or attitude into their normal way of doing things - Positive reinforcement is used to reinforce the desired change - Coaching and modeling help reinforce the stability of change