1 Organizational Change Organizational Change “Information Superhighway”
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Organizational ChangeOrganizational Change
“Information Superhighway”
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Nothing is permanent but “change”
-- Heraclitus
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ContentsContents
• Forces for ChangeForces for Change
• Resistance to ChangeResistance to Change
• Overcoming Resistance to ChangeOvercoming Resistance to Change
• Approaches to Managing Organizational ChangeApproaches to Managing Organizational Change
• Contemporary Change issues for Today’s Contemporary Change issues for Today’s
ManagersManagers
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Forces for ChangeForces for Change
Nature of the workforce More cultural diversity; aging population; many new entrants with inadequate skills
Technology Faster, cheaper and more mobile computers; deciphering the human genetic code
Economic shocks Rise and fall of the dot-com stocks, 2000-2002 stock market collapse
Competition Global competitors; mergers and acquisitions; growth of e-commerce
Social trends Internet chat rooms; retirement of baby boomers
World politics Iraq-U.S. War; Opening of markets in China; War on terrorism
© 2005 Prentice Hall Inc. All rights reserved.
Managing Planned Change
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
ChangeMaking things different.Planned ChangeActivities that are intentional and goal oriented.
Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.
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Change agentsChange agents
• Who are the change agents?Who are the change agents?
Managers or non-managersManagers or non-managers Current employees of the organizationsCurrent employees of the organizations Outside consultantsOutside consultants Newly hired employeesNewly hired employees
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Resistance to ChangeResistance to Change
Sources of Resistance to Change
Individual Sources
Habit Security Economic factors Fear for the unknown Selective information processing
Organizational Sources
Structural inertia Limited focus to change Group inertia Threat to expertise Threat to established power relationships Threat to established allocation of resources
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Education and Communication
Participation
Build Support & Commitment
Negotiation
Manipulation & Cooptation
Coercion
Tactics for dealing with resistance to
Change
Selecting people who
accept change
Overcoming Resistance to ChangeOvercoming Resistance to Change
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Approaches to Managing Approaches to Managing Organizational ChangeOrganizational Change
• Lewin’s three-step Change ModelLewin’s three-step Change Model• Action Research Action Research • Organizational DevelopmentOrganizational Development
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Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model
Movement RefreezingUnfreezing
© 2005 Prentice Hall Inc. All rights reserved.
Action ResearchAction Research
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to change.
Action research benefits:
Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to change.
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.
© 2005 Prentice Hall Inc. All rights reserved.
Organizational DevelopmentOrganizational Development
OD Values:1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
OD Values:1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
Organizational Development (OD)
A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.
© 2005 Prentice Hall Inc. All rights reserved.
Organizational Development Organizational Development TechniquesTechniques
Sensitivity Training
Training groups (T-groups) that seek to change behavior through unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening skills, greater openness, and increased tolerance for others.
© 2005 Prentice Hall Inc. All rights reserved.
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)
Process Consultation (PC)
A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.
© 2005 Prentice Hall Inc. All rights reserved.
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Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal relations.
• Role analysis to each member’s role and responsibilities.
• Team process analysis.
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal relations.
• Role analysis to each member’s role and responsibilities.
• Team process analysis.
Team Building
High interaction among team members to increase trust and openness.
© 2005 Prentice Hall Inc. All rights reserved.
Contemporary Change Issues for Contemporary Change Issues for Today’s Managers: Stimulating Today’s Managers: Stimulating
Innovation (cont’d)Innovation (cont’d)Idea ChampionsIndividuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.
© 2005 Prentice Hall Inc. All rights reserved.
18–17
Creating a Learning OrganizationCreating a Learning Organization
Characteristics:Characteristics:
1.1. Holds a shared visionHolds a shared vision
2.2. Discards old ways of Discards old ways of thinking.thinking.
3.3. Views organization as Views organization as system of relationships.system of relationships.
4.4. Communicates openly.Communicates openly.
5.5. Works together to achieve Works together to achieve shared vision.shared vision.
Characteristics:Characteristics:
1.1. Holds a shared visionHolds a shared vision
2.2. Discards old ways of Discards old ways of thinking.thinking.
3.3. Views organization as Views organization as system of relationships.system of relationships.
4.4. Communicates openly.Communicates openly.
5.5. Works together to achieve Works together to achieve shared vision.shared vision.
Learning Organization
An organization that has developed the continuous capacity to adapt and change.
Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).
© 2005 Prentice Hall Inc. All rights reserved.
Creating a Learning OrganizationCreating a Learning Organization
Single-Loop Learning
Errors are corrected using past routines and present policies.
Double-Loop Learning
Errors are corrected by modifying the organization’s objectives, policies, and standard routines.
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• Is managing change culture bound?Is managing change culture bound?
Cultural aspects that could influence change:-Cultural aspects that could influence change:-
Belief in the possibility to dominate the environmentBelief in the possibility to dominate the environment Time orientationTime orientation Degree of resistance to changeDegree of resistance to change Power-distancePower-distance Collectivist vs. individualistic culturesCollectivist vs. individualistic cultures
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SummarySummary
Change is indispensable. The way the Change is indispensable. The way the transition from status quo to the transition from status quo to the desired state is achieved depends desired state is achieved depends largely on the “approach” adopted by largely on the “approach” adopted by the change agents’ and the internal and the change agents’ and the internal and external culture within which the external culture within which the organization operates.organization operates.
© 2005 Prentice Hall Inc. All rights reserved.
A Model of StressA Model of Stress
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Managing StressManaging Stress• Individual Approaches
– Implementing time management– Increasing physical exercise– Relaxation training– Expanding social support network
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Managing StressManaging Stress
• Organizational Approaches– Improved personnel selection and job placement– Training– Use of realistic goal setting– Redesigning of jobs– Increased employee involvement– Improved organizational communication– Offering employee sabbaticals– Establishment of corporate wellness programs
© 2005 Prentice Hall Inc. All rights reserved.
Inverted-U Relationship between Inverted-U Relationship between Stress and Job PerformanceStress and Job Performance
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ReferenceReference
• Stephen Robbins – Organizational Behavior
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