© 2011 cengage learning. all rights reserved. chapter 18 managing change 1.identify the major...
TRANSCRIPT
© 2011 Cengage Learning. All rights reserved.
Chapter 18Managing Change
1. Identify the major external and internal forces for change in organizations.
2. Describe how different types of change vary in scope.
3. Discuss methods organizations can use to manage resistance to change.
4. Explain Lewin’s organizational change model.
5. Explain how companies determine the need to conduct an organizational development intervention.
6. Discuss the major group-focused techniques for organization development intervention.
7. Discuss the major individual-focused techniques for organization development intervention.
Lea
rnin
g O
utc
om
es
© 2011 Cengage Learning. All rights reserved.
Identify the major external and internal forces for change in organizations.
1 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Organizational Changes
Planned Change – change resulting from a deliberate decision to alter the organization
Unplanned Change – change that is imposed on the organization and is often unforeseen
External Forces for Change
Globalization WorkforceDiversity
ChangingTechnology
EthicalBehavior
© 2011 Cengage Learning. All rights reserved.
Globalization
and
© 2011 Cengage Learning. All rights reserved.
Organizations must rethink the most efficient ways to:
Use resourcesDisseminate/gather informationDevelop people
Globalization requires changes in structure and employee mindsets
© 2011 Cengage Learning. All rights reserved.
Workforce
Diversity
Workforce will see:Increased gender diversityIncreased cultural diversityIncreased age diversity
© 2011 Cengage Learning. All rights reserved.
Technological Change
Organizations that fail to keep pace canquickly fall behind.
Innovation promotes associated changes in work relationships and organizationalstructures.
© 2011 Cengage Learning. All rights reserved.
Managing Ethical Behavior
• Organizations must create a culture that encourages ethical behavior.
• Society expects organizations to maintain ethical behavior internally and externally.
Internal Forces for Change
Declining Effectiveness
Changes in expectations
CrisisChanges in work climate
© 2010 Cengage Learning. All rights reserved.
© 2011 Cengage Learning. All rights reserved.
Describe how different types of change vary in scope.
2 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Scope of Change
Incremental Change – change of a relatively small scope, such as making small improvements
Strategic Change – change of a larger scale, such as organizational restructuring
Transformational Change – change in which the organization moves to a radically different, and sometimes unknown, future state
© 2011 Cengage Learning. All rights reserved.
The Change Agent
• Individual or group that undertakes the task of introducing and managing a change in an organization.
• Internal or external
© 2011 Cengage Learning. All rights reserved.
Internal Change Agents
Advantages• know past history,
political system, and culture
• must live with results of change so will move carefully
Disadvantages• may be associated
with factions, accused of favoritism
• may be too close to the situation to be objective
© 2011 Cengage Learning. All rights reserved.
External Change Agents
To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with
Advantages• outsider’s
objective view• impartiality
Disadvantages• limited knowledge of
organization’s history
• may be viewed with suspicion
© 2011 Cengage Learning. All rights reserved.
Discuss methods organizations can use to manage resistance to change.
3 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Resistance to Change
• Fear of the unknown• Fear of loss• Fear of failure• Disruption of interpersonal
relationships• Personality conflicts• Politics• Cultural assumptions and
values
© 2011 Cengage Learning. All rights reserved.
Dealing with Resistance to Change
• Communication– details– rationale
• Participation in the process– ownership– commitment
• Empathy and support
© 2011 Cengage Learning. All rights reserved.
Explain Lewin’s organizational change model.
4 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Lewin’s Three-Step Change Model
1. Unfreezing – involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo
2. Moving – new attitudes, values, and behaviors are substituted for old ones
3. Refreezing – involves the establishment of new attitudes, values, and behaviors as the new status quo
Force Field Analysis of Decision to Engage in Exercise
Forces for change
Weight gain
Minimally passing
treadmill test
Feel lethargic;
have no energy
Family history of
cardiovascular disease
New, physically demanding job
Forces for status quo
Lack of time
No exercise facility at work
Spouse/partner hates to exercise
No interest in physical activity or sports
Made a grade of D in physical education class
EquilibriumEquilibrium
© 2010 Cengage Learning. All rights reserved.
© 2011 Cengage Learning. All rights reserved.
Applying Lewin’s Model
• Unfreezing: the organization eliminates rewards for current behavior
• Moving: the organization initiates new options and explains their rationale
• Refreezing: organizational culture and formal reward systems encourage the new behaviors
Unfreezing Moving Refreezing
Reducing forcesFor status quo
Developing newattitudes, values,and behaviors
Reinforcing newattitudes, values,and behaviors
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:Testing Your Tolerance for Ambiguity
Read each of the following statements carefully. Then rate each of them in terms of the extent to which you either agree or disagree with the statement using the following scale:
1 2 3 4 5 6 7
Completely Disagree
Completely Agree
Neither Agree nor Disagree
1. An expert who doesn’t come up with a definite answer probably doesn’t know much.2. I would like to live in a foreign country for a while.3. The sooner we all acquire similar values and ideals, the better.4. A good teacher is one who makes you wonder about your way of looking at things.5. I like parties where I know most of the people more than ones where all or most of the people are complete strangers.
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:Testing Your Tolerance for Ambiguity
6. Teachers or supervisors who hand out vague assignments give a chance for one to show initiative and originality.7. A person who leads an even, regular life in which few surprises or unexpected happenings arise really has a lot to be grateful for.8. Many of our most important decisions are based upon insufficient information.9. There is really no such thing as a problem that can’t be solved.10. People who fit their lives to a schedule probably miss most of the joy of living.11. A good job is one where what is to be done and how it is to be done are always clear.12. It is more fun to tackle a complicated problem than to solve a simple one.13. In the long run, it is possible to get more done by tackling small, simple problems rather than large and complicated ones.14. Often the most interesting and stimulating people are those who don’t mind being different and original.15. What we are used to is always preferable to what is unfamiliar.
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:Testing Your Tolerance for Ambiguity
Scoring: For even-numbered questions, add the total points. For odd-numbered questions, use reverse scoring and add the total points. (1 becomes 7, 2 becomes 6, etc.)
Interpreting Your Results:
A score of 15 would indicate perfect ambiguity tolerance, while perfect intolerance would yield a score of 105. Typical scores between 20 and 80 are reported, with means of 45. Tested private-sector managers scored 44.6 ± 8.5, while public- and third-sector managers scored 43 ± 20.
© 2011 Cengage Learning. All rights reserved.
Explain how companies determine the need to conduct an organizational development intervention.
5 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Organizational Development (OD)
a systematic approach to organizational
improvement that applies to organizational
improvement in order to increase individual and
organizational well-being and effectiveness
© 2011 Cengage Learning. All rights reserved.
Diagnosis and Needs Analysis
Questions to ask:• What are the forces for change?• What are the forces preserving the status quo?• What are the most likely sources of resistance?• What are the goals to be accomplished by
change?
Diagnosis and needs analysis Intervention
Follow-up
© 2011 Cengage Learning. All rights reserved.
Discuss the major group-focused techniques for organization development intervention.
6 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Group-Focused Techniques
• Survey feedback
• Management by objectives (MBO)
• Product and service quality programs
• Team building
• Process consultation
5
© 2011 Cengage Learning. All rights reserved.
Survey Feedback
A widely used method of intervention whereby employee attitudes are solicited by questionnaire
AnonymousGroup reporting format No repercussionsClear purposeFollow-up
© 2011 Cengage Learning. All rights reserved.
An organization-wide intervention technique of joint goal setting between employees and managers
Initial objectivesPeriodic progress reviews Problem solving to remove obstacles to goal achievement
Management by Objectives
© 2011 Cengage Learning. All rights reserved.
A program that embeds product and service quality excellence into the organizational culture
Raise aspirations about product/service quality
Embed product/service quality excellence in the organizational culture
Quality Program
© 2011 Cengage Learning. All rights reserved.
An intervention designed to improve the effectiveness of a work group
Seek feedbackDiscuss errorsReflect on successes and
failuresExperiment with new ways of
performingClimate of psychological safety
Team Building
© 2011 Cengage Learning. All rights reserved.
An OD method that helps managers and employers improve the processes that are used in organizations
Outside consultant:Enters organizationDefines the relationship Chooses an approachGathers data Diagnoses problemIntervenesLeaves organization
Process Consultation
© 2011 Cengage Learning. All rights reserved.
Discuss the major individual-focused techniques for organization development intervention.
7 Learning Outcome
© 2011 Cengage Learning. All rights reserved.
Individual-Focused Techniques
• Skills training
• Leadership training & development
• Executive coaching
• Role negotiation
• Job redesign
• Health promotion programs
• Career planning
© 2011 Cengage Learning. All rights reserved.
Skills Training
increasing the job knowledge, skills, and
abilities that are necessary to do a job
effectively
© 2011 Cengage Learning. All rights reserved.
A variety of techniques that are designed to enhance individual’s leadership skills
Action learningSimulationBusiness gamesRole-playingCase studies
Leadership Training & Development
© 2011 Cengage Learning. All rights reserved.
A host of techniques for enhancing managers’ skills in an organization
Verbal informationIntellectual skillsAttitudesDevelopment
Executive Coaching
© 2011 Cengage Learning. All rights reserved.
A technique whereby individuals meet and clarify their psychological contract
•Better understanding of what each can be expected to give and receive• Less ambiguity
Role Negotiation
© 2011 Cengage Learning. All rights reserved.
An OD intervention method that alters jobs to improve the fit between individual skills and the demands of the job
Realign task demands and individual capabilities
Redesign jobs to fit new techniques or organization structures
Job Redesign
© 2011 Cengage Learning. All rights reserved.
HealthPromotionPrograms Ex. Stress reduction
education, employee assistance
Match individual’s career aspirations with organizational opportunities
Health and Career
Career Planning
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:When The Perks Are Gone
Because of the global recession, many organizations are removing organizationalperks and benefits in order to save money.
No more free lunches, no co-pay health insurance, subsidized child care, etc.
In light of these changes, what can be done to make sure employees stay content and motivated?
• Remember that perks are not essential to the job; i.e., lose the sense of entitlement• Be fair in cutbacks.• Continue gathering with co-workers, even at your own expense. • You are part of the solution – ask yourself “What does my work offer that I can be happy about?”
© 2011 Cengage Learning. All rights reserved.
Field of Dreams
1.Who is the target of change in this scene?
2. What are the forces for change? Are the forces for change internal or external to the change target?
3. Does the scene show the role of leadership in organizational change? If it does, who is the leader?