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Chapter 1818OrganizationalOrganizational

Change andChange and

DevelopmentDevelopment

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Chapter Objectives

Appreciate the forces that lead to

organization change and the various

impediments to change that arise duringthe change process

Distinguish between evolutionary and

revolutionary change and identify the main

types of each of these kinds of changeprocesses

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Chapter Objectives

Discuss the main steps involved in action

research and identify the main issues that

must be addressed to manage the changeprocess effectively

Understand the process of organization

development and how to use various

change techniques to facilitate the changeprocess

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Opening Case: Toyota is a Master at

Managing Change

Why is change important at Toyota?

Lean production

Kaizen

Change management provided differential

advantage over major competitors

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What is Organizational Change?

Movement of an organization away from its

present state and toward some desired

future state to increase its effectiveness Reengineering

TQM

Innovation Restructuring

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Table 18.1 Forces for and

Impediments to Change

Forces for Change

Competitive

Economic andpolitical

Global

Demographic and

social Ethical

Impediments

Power and conflict

Differences infunctional orientation

Mechanistic structure

Organizational culture

Group norms Uncertainty/ insecurity

Habit

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Lewins Force-Field Theory of Change

Forces resist change

Forces push change

Performance levels

P1 = Balance

P2

Increase forces for change, reduce forces for change, or

both

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Insert Figure 19.1 here

Figure 18.1 Lewins Force-Field

Theory of Change

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Instruments of Evolutionary

Change

Socio-technical systems theory

Total quality management

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Instruments of Revolutionary Change

Reengineering

Restructuring

Innovation

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A strategy for generating and acquiringknowledge that managers can use todefine an organizations desired futurestate and to plan a change program that

allows the organization to reach thatstate

Managing Change: Action Research

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Figure 18.3 Steps in Action Research

1. Diagnosing organization

2. Determining desired state

3. Implementing action

4. Evaluating action

5. Institutionalizing action

research

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Implementing Action

Identify possible impediments to change

Decide who will be responsible

External change agents

Internal change agents

Decide specific change strategy

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Change Agents

External

Outside consultants

who are experts atmanaging change

Internal

Managers from

within theorganization who are

knowledgeable

about the situation

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Types of Change

Top-down

Implemented by

managers at a high-level in organization

Result of radical

restructuring and

reengineering

More resistance

Bottom-up

Implemented by

employees at lowlevels and rises over

time

All levels involved in

change process

Less resistance

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A series of techniques and methodsthat managers can use in their action

research program to increase the

adaptability of their organization.

Organization Development

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OD Techniques to Deal with

Resistance to Change

Education and Communication

Participation and Empowerment

Facilitation

Bargaining and Negotiation

Manipulation

Coercion

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OD Techniques to Promote Change

Counseling

Sensitivity Training

Process Consultation

Team Building

Intergroup Training

Total OrganizationalInterventions