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Chapter 18
Organizational Change
and Development
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Learning Goals
Discuss the pressures on managers to
change their organizations
Describe different types of organizational
change
Explain the phases and targets of planned
organizational change
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Learning Goals (Cont.)
List some reasons for resistance to change
in organizations
Describe the organizational development
techniques managers can use to change their
organizations
Understand some international aspects of
organizational change and development
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Chapter Overview Introduction
Forces For and Against Change
Unplanned and Planned Organizational
Change
Targets of Organizational Change
Planned Organizational Change
Resistance to Change
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Chapter Overview (Cont.) Organizational Development
International Aspects of Organizational
Change and Development
Ethical Issues About Organizational Change
and Development
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Introduction Organizational change involves movement
from the present state of the organization to
some future or target state Future state can include a new strategy, new
technology, or changes in the organizationsculture
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Introduction (Cont.)
TimeA A
Organizational change: moving from thepresent state of the organization to some
future or target state.
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Introduction (Cont.) Many sources of pressure on managers to
change their organizations exist and will
continue in the future Identify the pressures on organizations and
their managers to change
Want to know the probable effects on youas a member of a changing system
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Introduction (Cont.) Know how to deliberately change an
organization
Understand the sources of resistance to
change
Learn how to manage the change process to
reduce resistance
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Forces For and Against Change External forces for change
Competitors and markets
Acquisition threats
International: global markets
Workforce diversity
Quality management
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Forces For and Against Change
(Cont.) Internal forces for change
High dissatisfaction
Felt stress
Loss of control of processes
Dysfunctionally high conflict
Slow decision making
High turnover and absenteeism
Communication dysfunctions
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Forces For and Against Change
(Cont.) Forces against change
Internal: resistance to change from individuals
and groups
External: special interest groups such as
consumer groups and unions
View the forces for and against change as
a force field working on the organization
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Forces For and Against Change
(Cont.)
Present state of
the organizationDesired state of
the organization
A ATime
Forces forchange
Forces against
change
A Force Field
Text book Figure 18.1
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Unplanned and Planned
Organizational Change Unplanned organizational change: forces
for change overwhelm resistance to change
Planned organizational change: A
deliberate, systematic change effort
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Unplanned and Planned
Organizational Change (Cont.) Unplanned organizational change
Forces for change overwhelm resistance to
change Usually unexpected
Chaotic, uncontrolled change effects
Example: economic changes leading toreductions in workforce
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Unplanned and Planned
Organizational Change (Cont.) Planned organizational change
A deliberate, systematic change effort
Change organizational design, information
systems, job design, and peoples behavior
Although managers try to follow a plan, the
change does not always move smoothly The change effort often hits blockages, causing
managers to rethink their goals and plan
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Unplanned and Planned
Organizational Change (Cont.) Planned organizational change (cont.)
Phases
Define the desired future state of the organization Diagnose the present state of the organization
Move the organization to the desired future state
A change agenthelps managers to bring about
planned change. An external or internalconsultant
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Targets of Planned
Organizational Change Organizational culture
Decision processes
Communication processes
Job design
Organizational design
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Targets of Planned
Organizational Change (Cont.) Technology
Strategy
Managers should choose the target only after careful
assessment of the current state of the organization
and the need for change.
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Targets of Planned
Organizational Change (Cont.)
Externalenvironment Strategy
Targets
CultureTechnology
Organizational design
Job design
Mission
A model for thinking about planned organizational change
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Planned Organizational Change Reasons for planned organizational change
Managers react to environmental shifts
They anticipate the future state of the externalenvironment
Often a difficult task. As noted by anorganizational change scholar, planned
organization change is messy and never as clearas we have written in our books and articles
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Planned Organizational Change
(Cont.) Models of planned organizational change
Evolutionary model
Incremental change
Example: changing the organizations pay scale to
stay market competitive
Revolutionary model
Change many parts of an organization
Example: strategic shift
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Planned Organizational Change
(Cont.) Evolutionary model of organizational
change
Three phases with no distinct boundaries. Eachphase blends into the next phase
A manager or other change agent develops a needfor change among those affected
The change agent then tries to move theorganization or part of it toward the changed state
The change agent tries to stabilize the change andmake it a part of the organization
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Planned Organizational Change
(Cont.) Evolutionary model of organizational
change
Sees change happening in small bits that add to
a total amount of change
Unexpected events can occur along the way,
forcing a return to an earlier phase
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Planned Organizational Change
(Cont.) Revolutionary model of organizational
change Organizational change unfolds over long
periods of stability followed by bursts of majorchange activities
Uses three concepts Equilibrium period: organization moves steadily
toward its mission and goals Revolutionary period: a major change in the
strategic direction of the organization
Deep structures: enduring features of theorganization that let it succeed
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Planned Organizational Change
(Cont.) Revolutionary model of organizational
change (cont.)
Two events trigger a revolutionary period
Dissatisfaction with the organization's performance
Strong feelings among organization members that it
is time for change
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Planned Organizational Change
(Cont.) Revolutionary model of organizational
change (cont.)
Strong feelings among organization members
that it is time for change
Organization members feel uneasy with the current
equilibrium period
Develop feelings of little forward movement
Characterizes organizations that must shift direction
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Resistance to Change No matter what the target, changes affect
the social system of an organization
People develop long-standing, familiar
patterns of social interaction
Strong resistance develops when
organizational change affects these socialnetworks
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Resistance to Change (Cont.) Resistance can take many forms
Lack of cooperation with the change effort
Sabotage of the change effort
Dysfunctionally high conflict levels
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Resistance to Change (Cont.) Reasons for resistance to change
Perceive the loss of something valued such as
social status
Misunderstand the goal of the change
Distrust the change agent
No common perception of the value of thechange
Low tolerance for change
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Resistance to Change (Cont.) Managers orientation to resistance to
change (cont.)
Absence of resistance
Also a signal to get more information
Low commitment to the change can make thechange less effective
Resisters can focus the change agents on potentiallydysfunctional aspects of a proposed change
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Resistance to Change (Cont.) Managing the change process to reduce
resistance
Use change agents with characteristics similarto the change target
Use dramatic ceremonies and symbols to signaldisengagement from the past
Widely communicate information about thechange
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Resistance to Change (Cont.) Managing the change process to reduce
resistance (cont.)
Involve those affected by the change Commit enough resources
Negotiation may be necessary, when a powerful
person or group is a potential source of
resistance
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Resistance to Change (Cont.) Managing the change process to reduce
resistance (cont.)
Cooptation: a political tactic that aims to gainendorsement of the change from importantindividuals or groups
Sometimes no choice other than to force change
onto the target system
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Organizational Development Organizational development is a long-
term, systematic, and prescriptive approach
to planned organizational change Although it uses a system-wide view, it can
focus on single subsystems of anorganization
Applies the theories and concepts of thesocial and behavioral sciences toorganizational change
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Phases of Organizational
Development (Cont.) Organizational development unfolds in a
series of phases
These are phases, not steps, because no
clear boundaries exist between them
Phases can repeat. For example, during the
evaluation phase, managers may discover aneed for more data from the diagnosis stage
See text book Figure 18.2
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Phases of Organizational
Development (Cont.)
Contracting
Develop an agreement between the consultantand client
Can range from an oral agreement to a legallybinding agreement
Describes mutual expectations and each partysduties
Not static. Subject to renegotiation as theorganizational development program unfolds
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Phases of Organizational
Development (Cont.)
Diagnosis
Consultant gets information about the clientsystem and diagnoses its current state
Observe the clients behavior and reactions
Observe physical characteristics of system
Systematic data collection using surveys, interviews,and company records
Consultant summarizes this phases results for
feedback to the client system
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Phases of Organizational
Development (Cont.)
Planning the change
A collaborative activity between the consultantand client system
Identify alternative courses of action and the
effects of each
Lay out the steps in the change program
Client decides the nature of the change
program--not the consultant
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Phases of Organizational
Development (Cont.)
Intervention Collaborative intervention to move the client
system to the desired future state Includes job and organizational design changes,
conflict reduction program, and the like. Seethe Organizational Development
Interventions section of the chapter Consultants role: help the intervention andforecast dysfunctional results
Earlier client involvement helps reduceresistance to change in the intervention phase
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Phases of Organizational
Development (Cont.)
Evaluation
Focuses on whether the organizationaldevelopment effort had the desired effect
Ranges from simply asking how the client feels
to a well-designed research effort
Done independently of the consultant Should also give the client system information
about the next steps to take
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Organizational Development
Interventions (Cont.) Human process interventions
Focus on interpersonal, intra-group, and
intergroup processes
Includes conflict, communication and decision
making
Goal: improve human processes to get moreeffective organizational functioning
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Organizational Development
Interventions (Cont.) Structural and technological interventions
Focus on organizational design, job design, and
the addition of new technology
New technology focuses on improving
organizational processes
Goal: improve human productivity andorganizational effectiveness
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Organizational Development
Interventions (Cont.) Human resource management
interventions
Draws on the human resource management orpersonnel practices of an organization
Includes motivation and rewards, careerplanning and development, and stress
management Goal: change individual behavior and
performance to get improved organizationaleffectiveness
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Organizational Development
Interventions (Cont.) Multiple interventions have the strongest
effects
Structural/technological interventions andhuman resource management interventionshad the strongest effects
Effects stronger in small organizations thanin large organizations
Survey feedback has weaker effects thanother interventions
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International Aspects of
Organizational Development Intellectual roots of organizational
development are mainly in the United
States, England, northern Europe, andScandinavia
Values and assumptions of organizationaldevelopment consultants likely reflect these
cultural values
Nature of interventions also reflect thesecultural values
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International Aspects ofOrganizational Development
(Cont.) Cultural differences and effect of
organizational development approaches
Latin American workers often accept adirective management style
France and Italy: view organizations ashierarchical systems that use power and
political behavior Sweden and the United States: view
organizations as less hierarchical
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International Aspects of
Organizational Development
(Cont.) Cultural differences and effect of
organizational development approaches(cont.)
Conflict management approaches varydepending on tolerance of uncertainty
Tend to use nonconfrontational approaches toconflict reduction
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Ethical Issues About
Organizational Development Ethical dilemmas that can undermine an
organizational development effort
Misrepresentation of consultants capabilities,skills, or experience
Misrepresentation of clients problems
Data confidentiality and voluntarism in
providing data Full awareness of and consent to the behavioral
changes asked of participants