Org change new

Managing Change

Organizational Change

Managers must be prepared to handle both

Planned Change –

change resulting from a deliberate decision to alter the organization

Unplanned Change –

change that is imposed on the organization and is often unforeseen

External Forces for Change

Globalization WorkforceDiversity

ChangingTechnology

EthicalBehavior

Majority ofnew workerswill be female

Workforce will grow in diversity -

Workforce is aging -less young workers, moremiddle-aged

Globalization

WorkforceDiversity

Organizations must rethink the most efficient ways to

Use resourcesDisseminate/gather informationDevelop people

MentalChange

StructuralChange

and

TechnologicalChange

Changes in work

relationships

Changes in organizational

structureChanging

Technology

EthicalBehavior

TreatmentEthical

Other Organizations

Customers

Environment

Society

Internal Forces for Change

DecliningEffectiveness

ChangingEmployee

Expectations

CompanyCrisis

ChangingWork Climate

Scope of Change

Incremental Change – change of a relatively small scope, such as making small improvements

Strategic Change – change of a larger scale, such as organizational restructuring

Transformational Change – change in which the organization moves to a radically different, and sometimes unknown, future state

The Change Agent’s RoleChange Agent – the individual or group who

undertakes the task of introducing and managing a change in an organization

Effective change leaders build relationships– Within the leadership team– Between the team and organizational members– Between the team and key environmental players

Internal Change Agents

Advantages• know past history,

political system, and culture

• must live with results of change so will move carefully

Disadvantages• may be associated

with factions, accused of favoritism

• may be too close to the situation to be objective

External Change Agents

To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with

Advantages• outsider’s

objective view• impartiality

Disadvantages• limited knowledge of

organization’s history

• may be viewed with suspicion

Resistance to Change

• Fear of the unknown• Fear of loss• Fear of failure• Disruption of

interpersonal relationships

• Personality conflicts• Politics• Cultural assumptions

and values

Dealing with Resistance to Change

• Communication– details– rationale

• Participation in the process– ownership– commitment

• Empathy and support

Reactions to Change and Managerial Interventions

Reaction

Disengagementpsychological withdrawal from changeDisidentificationfeeling that one’s identity is beingthreatened by change Disenchantment feeling negativity or anger toward a changeDisorientationfeelings of loss and confusion due to change

Expression

Withdrawal

Sadness, worry

Anger

Confusion

Managerial Intervention Confront, identify

Explore, transfer

Neutralize, acknowledge

Explain, plan

Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15. Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.

Lewin’s Three-Step Change Model

1. Unfreezing – involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo

2. Moving – new attitudes, values, and behaviors are substituted for old ones

3. Refreezing – involves the establishment of new attitudes, values, and behaviors as the new status quo

Force Field Analysis of Decision to Engage in Exercise

Forces for change

Weight gain

Minimally passing

treadmill test

Feel lethargic;

have no energy

Family history of

cardiovascular disease

New, physically demanding job

Forces for status quo

Lack of time

No exercise facility at work

Spouse/partner hates to exercise

No interest in physical activity or sports

Made a grade of D in physical education class

EquilibriumEquilibrium

Applying Lewin’s Model to the Organization

• Unfreezing: the organization eliminates rewards for current behavior

• Moving: the organization initiates new options and explains their rationale

• Refreezing: organizational culture and formal reward systems encourage the new behaviors

Unfreezing Moving Refreezing

Reducing forcesFor status quo

Developing newattitudes, values,and behaviors

Reinforcing newattitudes, values,and behaviors

Organizational Development (OD)

Organizational Development (OD) – a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness

Diagnosis and Needs Analysis

Diagnosis and needs analysis

Ask• What are the forces for change?• What are the forces preserving the status quo?• What are the most likely sources of resistance?• What are the goals to be accomplished by

change?

Intervention

Follow-up

OD Intervention Methods: Organizational/Group Techniques

Survey Feedback – a widely used method of intervention whereby employee attitudes are solicited by questionnaire

AnonymousGroup reporting format No repercussionsClear purposeFollow-up

an organization-wide intervention technique of joint goal setting between employees and managers

Initial objectivesPeriodic progress reviews Problem solving to remove obstacles to goal achievement

OD Intervention Methods: Organizational/Group Techniques

Management by Objectives –

Quality Program – a program that

embeds product and service quality excellence into the organizational culture

Raise aspirations about product/service quality

Embed product/service quality excellence in the organizational culture

OD Intervention Methods: Organizational/Group Techniques

Team Building – an intervention designed to improve the effectiveness of a work group

Seek feedbackDiscuss errorsReflect on successes and

failuresExperiment with new ways

of performingClimate of psychological

safety

OD Intervention Methods: Organizational/Group Techniques

an OD method that helps managers and employers improve the processes that are used in organizations

Outside consultant:Enters organizationDefines the relationship Chooses an approachGathers data Diagnoses problemIntervenesLeaves organization

OD Intervention Methods: Organizational/Group Techniques

Process Consultation –

OD Intervention Methods: Individual-Focused Techniques

Skills Training – increasing the job knowledge, skills, and abilities that are necessary to do a job effectively

In formal classroom settingsOn the job (Continual updating)

OD Intervention Methods: Individual-Focused Techniques

Leadership Training and Development – a variety of techniques that are designed to enhance individual’s leadership skills

Action learningSimulationBusiness gamesRole-playingCase studies

OD Intervention Methods: Individual-Focused Techniques

a host of techniques for enhancing managers’ skills in an organization

Verbal informationIntellectual skillsAttitudesDevelopment

Executive Coaching –

OD Intervention Methods: Individual-Focused Techniques

Role Negotiation – a technique whereby individuals meet and clarify their psychological contract

Outcomes• Better understanding of what each can be expected to give and receive• Less ambiguity

OD Intervention Methods: Individual-Focused Techniques

Job Redesign – an OD intervention method that alters jobs to improve the fit between individual skills and the demands of the job

Realign task demands and individual capabilities

Redesign jobs to fit new techniques or organization structures

OD Intervention Methods: Individual-Focused Techniques

HealthPromotionPrograms

CareerPlanning

Ex. Stress reduction education, employee assistance

Match individual’s career aspirations with organizational opportunities

Ethical Considerations in Organizational Development

• Selection of the OD method

• Voluntary participation

• Confidentiality

• Potential for manipulation by the change agent