Organizational BehaviorBUS-542

Instructor: Erlan Bakiev, Ph.D.

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Chapter 16

Organizational Change

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Essentials of Organizational Behavior, 11/e

Stephen P. Robbins & Timothy A. Judge

After studying this chapter, you should be able to:

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1. Identify forces that act as stimulants to change.2. List the sources for resistance to change.3. Compare the four main approaches to managing

organizational change.4. Demonstrate two ways to create a culture of

change.5. Describe the causes and consequences of work

stress.6. Explain global differences in organizational

change and stress.

Forces that Stimulate Change

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Sources of Resistance to Change

Habit Security Economic Factors Fear of the Unknown Selective Information

Processing

Structural Inertia Limited Focus of Change Group Inertia Threat to Expertise Threat to Established

Power Relationships and Resource Allocations

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Individual Organizational

People tend to resist change, even in the face of evidence of

its benefits.

Overcoming Resistance to Change16-6

1. Education and Communication2. Participation3. Building Support and

Commitment4. Implementing Changes Fairly5. Cooptation6. Selecting People who Accept

Change7. Coercion

Approaches to Managing Organizational Change

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Lewin’s Three-Step Model of Change

Kotter’s Eight-Step Model of the Change Process

Organizational Development

Lewin’s Three-Step Model16-8

Unfreezing can be achieved by: Increase driving forces that direct

behavior away from the status quo Decrease restraining forces that

hinder movement from the existing equilibrium

Combine the two above approaches

Kotter’s Eight-Step Plan1. Create

urgency2. Form coalition3. Create new

vision4. Communicate

the vision

5. Empower others6. Reward “wins”7. Consolidate

improvements

8. Reinforce the change

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Unfreezing

MovementRefreezing

Organizational Development

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A collection of planned-change interventions that seek to improve organizational

effectiveness and employee well-beingBased on humanistic-democratic values:

Respect for People Trust and Support Power Equalization Confrontation Participation

OD Interventions16-11

Sensitivity Training Changing behavior through unstructured group

interaction Survey Feedback

Gathering data and acting on it Process Consultation

Using outside consultants Appreciative Inquiry

Discovering what the organization does right

Stimulating a Culture of Innovation Innovation is a

new idea applied to initiating or improving a product, process or service.

Sources of innovation included: structure, culture, human resources.

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Idea Champions16-13

Managers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is

implemented Have high self-confidence, persistence, energy,

and acceptance of risk Use inspiration and vision to gain commitment Have decision-making discretion

Work Stress16-14

Dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what is desired and for which the outcome

is perceived to be both uncertain and important Types:

Challenge Stress – may improve performance Hindrance Stress – comes from obstacles to achieving

goals – mostly negative

Managing Stress

Employee Selection Organizational

Communication Goal-setting

Programs Job Redesign

Counseling Time

Management Physical Activity

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Organizational Personal

Managers have no direct control on personal stress and there are ethical considerations

about intruding into employees’ personal lives

Global Implications16-16

Is managing change culture bound?1. Do people believe change is possible?

Yes, when people believe they control their environment

2. If it’s possible, how long will it take to bring about? Short-term focus cultures want fast results

3. Is resistance to change greater in some cultures than in others? Yes, traditional cultures resist change

Global Implications Continued16-17

4. Does culture influence how change efforts will be implemented? Yes, high power distance cultures are

autocratic5. Do successful idea champions do things

differently in different cultures? Yes, idea champions modified techniques

based on cultureDoes stress vary across cultures?

The conditions that lead to stress may vary, but the personality effects, outcomes, and reduction methods do not

Implications for Managers16-18

The need for change encompasses almost aspects of OB

The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels

Managers must continually act as change agents

Keep in Mind…16-19

Organizations and their members tend to resist change

It is unlikely that anyone approach to managing change we best in every situation

Changes often stressful, but not all stress is harmful

Summary16-20

1. Identified forces that act as stimulants to change.2. Listed the sources for resistance to change.3. Compared the three main approaches to

managing organizational change.4. Described the causes and consequences of work

stress.5. Described characteristics of a learning

organization.6. Explained global differences in organizational

change and stress.