Managing Change
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
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
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
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