Oc

Managing Change

Module 10

LIS 580: Spring 2006

Instructor- Michael Crandall

April 27, 2006 LIS580- Spring 2006 2

Roadmap

• The context

• What is organizational change?

• Processes for managing change

• People and change

• Organizational Development

• Conflict resolution

• Fostering innovation

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Ghoshal & Bartlett

• Old values: compliance, control, contract and constraint

• New values: discipline, support, trust and stretch• Successful change involves simplification, integration,

and regeneration• Phased approach essential, along with focus on

people’s attitudes, assumptions and behaviors• Brings both organizational design and human

resources lessons to bear• Ghoshal and Bartlett provide a high-level model for

change, let’s look at some of the details and lessons learned at a more granular level

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What is Organizational Change?

• An alteration of an organization’s environment, structure, culture, technology, or people– A constant force– An organizational reality– An opportunity or a threat

• Change agent– A person who initiates and assumes the

responsibility for managing a change in an organization

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Basic Questions for Change Agents

• What are the forces acting upon me?– What are the pressures I should take into

consideration as I decide what to change and how I should change it?

• What should we change?– Should the changes be strategic and

companywide or relatively limited?

• How should we change it?– How should we actually implement the

change?G.Dessler, 2003

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Forces for Change

External Forces Internal ForcesCompetition Laws and regulations

Strategy modifications

New technologies New equipment

Labor market shifts New processes

Business cycles Workforce composition

Social change Job restructuring

Compensation and benefits

Labor surpluses and shortages

Employee attitudePrentice Hall, 2002

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Three Categories of Change

Organizational Culture

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 8

Model for Planned Organizational Change

FIGURE 8–1Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003

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Two Views of the ChangeProcess

• “Calm waters” metaphor– A description of traditional practices in and

theories about organizations that likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm

• “White-water rapids” metaphor– A description of the organization as a small

raft navigating a raging river

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 10

Change in “Calm Waters”

• Kurt Lewin’s Three-Step Process– Unfreezing

• The driving forces, which direct behavior away from the status quo, can be increased

• The restraining forces, which hinder movement from the existing equilibrium, can be decreased

• The two approaches can be combined– Implementation of change– Refreezing

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 11

Change in “White-waterRapids”

• Change is constant in a dynamic environment• The only certainty is continuing uncertainty• Competitive advantages do not last• Managers must quickly and properly react to

unexpected events– Be alert to problems and opportunities– Become change agents in stimulating,

implementing and supporting change in the organization

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 12

Is a New Structure Really Required?

FIGURE 8–2Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.

When you identify a problem with your design, first look for ways to fix it without substantially altering it. If that doesn’t work, you’ll have to make fundamental changes or even reject the design. Here’s a step-by-step process for resolving problems.

When you identify a problem with your design, first look for ways to fix it without substantially altering it. If that doesn’t work, you’ll have to make fundamental changes or even reject the design. Here’s a step-by-step process for resolving problems.

G.Dessler, 2003

April 27, 2006 LIS580- Spring 2006 13

Is a New Structure Really Required? (cont’d)

FIGURE 8–2bSource: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.

G.Dessler, 2003

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A Nine-step Process For Leading Organizational Change

1. Create a Sense of Urgency

2. Decide What to Change3. Create a Guiding

Coalition and Mobilize Commitment

4. Develop and Communicate a Shared Vision

5. Empower Employees to Make the Change

6. Generate Short-Term Wins

7. Consolidate Gains and Produce More Change

8. Anchor the New Ways of Doing Things in the Company Culture

9. Monitor Progress and Adjust the Vision as Required

G.Dessler, 2003

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Why People Resist Change

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 16

FIGURE 8–3

How Immune Is the Person to Change?

Source: Robert Kegan and Lisa Lahey, “The Real Reason People Won’t Change,” Harvard Business Review, November 2001, p. 89. G.Dessler, 2003

April 27, 2006 LIS580- Spring 2006 17G.Dessler, 2003

Dealing with Change

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FIGURE 8–5

Barriers to Empowerment

Source: Reprinted by permission of Harvard Business School Press. From Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright © 1996 by the President and Fellows of Harvard College, all rights reserved. G.Dessler, 2003

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Organizational Development

• Organizational Development (OD)– An approach to organizational change in

which the employees themselves formulate the change that’s required and implement it,

usually with the aid of a trained consultant.

G.Dessler, 2003

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OD Interventions

• Human Process Interventions– Aimed at enabling employees to develop a better

understanding of their own and others’ behaviors for the purpose of improving that behavior such that the organization benefits.

• Sensitivity Training (Laboratory or T-groups)– Purpose is to increase participants’ insight into

their own behavior and that of others by encouraging an open expression of feelings in a trainer-guided group.

G.Dessler, 2003

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OD Interventions (cont’d)

• Team Building– The process of improving the effectiveness

of a team through action research or other techniques.

• Survey Research– The process of collecting data from attitude

surveys filled out by employees of an organization, then feeding the data back to workgroups to provide a basis for problem analysis and action planning.

G.Dessler, 2003

April 27, 2006 LIS580- Spring 2006 22G.Dessler, 2003

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Technostructural Applications of OD

• Formal Structure Change Program– An intervention technique in which

employees collect information on existing formal organizational structures and analyze it for the purpose of redesigning and implementing

new organizational structures.

G.Dessler, 2003

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Strategic Applications of OD

• Strategic Intervention– An OD application aimed at effecting a suitable fit

among a firm’s strategy, structure, culture, and external environments.

• Integrated Strategic Management– An OD program to create or change a company’s

strategy by:• Analyzing the current strategy• Choosing a desired strategy• Designing a strategic change plan• Implementing the new plan.

G.Dessler, 2003

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Organizational Stressors:Role Demands

• Role conflicts– Work expectations that are hard to satisfy

• Role overload– Having more work to accomplish than time

permits

• Role ambiguity– When role expectations are not clearly

understood

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 26

FIGURE 8–7

Conflict Handling Styles

Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus, OH: Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p. 223. G.Dessler, 2003

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G.Dessler, 2003

Conflict Resolution Modes

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Stimulating Innovation

• Creativity– The ability to combine ideas in a unique way or to

make unusual connections

• Innovation– The process of taking a creative idea and turning it

into a useful product, service, or method of operation

• Perception• Incubation• Inspiration• Innovation

Prentice Hall, 2002

April 27, 2006 LIS580- Spring 2006 29

Structural Variables AffectingInnovation

• Organic structures– Positively influence innovation through less work

specialization, fewer rules and decentralization

• Easy availability of plentiful resources– Allow management to purchase innovations, bear

the cost of instituting innovations, and absorb failures

• Frequent inter-unit communication– Helps to break down barriers to innovation by

facilitating interaction across departmental linesPrentice Hall, 2002

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Next Week

• Leading– Monday’s topic is “motivation”– Read Chapters 10 and 11 and the assigned

articles• Discussion group-- think about the following

questions:– Does NASA have clear and consistent

leadership?– What are some of the problems with the

leadership structure?– How do you think this affects the motivation of the

engineers and managers?– Does this have impact on safety & performance?– What could be done to improve the situation?