Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–1 CHAPTER 16 MANAGING ORGANISATIONS THROUGH CHANGE & CONFLICT
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Nov 10, 2014
MANAGING ORGANISATIONS THROUGH CHANGE & CONFLICT
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Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–1
CHAPTER 16
MANAGING ORGANISATIONS THROUGH CHANGE & CONFLICT
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–2
LECTURE OUTLINE
• Managing change• Managing resistance to change• Managing conflict• Relationship between conflict &
change
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–3
MANAGING CHANGE
Managing change:• Diagnosing the need for change
– Internal factors– External factors
• The change cycleEffective organisational change is cyclical
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–4
MANAGING CHANGEThe change cycle
1.Performance
gap 2.Identify a
desired future
3.Recogniseneed forchange
4.Problemdiagnosis5.
Developmentof
alternatives
6.Selection ofappropriatealternatives
7.Implementation
8.Evaluation
againstdesired
outcomes
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–5
MANAGING CHANGE
The organisation
Externalchangefactors
economy
regulations
competition
technicaldevelopment
imports
politics
Internalchangefactors
structure
jobs
employees
technologyculture
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–6
MANAGING RESISTANCE TO CHANGEIndividual resistance to change:• Self-interest• Misunderstanding• Lack of trust• Differential assessment• Ability to adjust
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–7
MANAGING RESISTANCE TO CHANGE
Managing resistance to change:• Freeze cycle approach
UnfreezingInitial awareness of need for change is developed
ChangingFocus on learning needed new behaviours
FreezingReinforcing new learned behaviours
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–8
MANAGING RESISTANCE TO CHANGE
UNFREEZEUNFREEZE CHANGEUNFREEZE REFREEZE
THREE-STEP PROCESS:
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–9
MANAGING RESISTANCE TO CHANGE
Overcoming resistance to change:Methods adopted by managers• Education & communication• Participation & involvement• Facilitation & support• Negotiation & agreement• Manipulation & cooptation• Explicit & implicit coercion
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–10
MANAGING RESISTANCE TO CHANGEOvercoming resistance
METHODS(Kotter & Schlesinger)
Participation & involvementEducation &
communication
Facilitation &support
Negotiation &agreementManipulation &
cooptation
Explicit & implicit coercion
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–11
MANAGING RESISTANCE TO CHANGEForce-field analysis:
Method involving analysing the two types of forces—driving forces & restraining forces—that influence any proposed change, then assessing how best to overcome resistance
• Driving forcesFactors pressuring for a particular change
• Restraining forces
Factors pressuring against a change
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–12
MANAGING RESISTANCE TO CHANGE
Overcoming resistance to changeForce Field Analysis (Kurt Lewin)‘a method involving analysing the two types of forces, driving forces and restraining forces,that influence any proposed change, then assessing how best to overcome resistance.’
Driving forcesDriving forces
Factors pressuringfor a
particularchange
RestrainingRestrainingforcesforces
Factors pressuring
against a change
CHANGE
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–13
MANAGING RESISTANCE TO CHANGEForces for change Forces against
change
Good union relations Failing union relations
Foreign competition Stringent work rules
Recent losses Current benefit costs
Cheaper outside sources Current pay costs
Union desire to save jobs Absenteeism levels
Company reluctance to Company desire for
save jobs flexibility in layoff decisions
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–14
MANAGING CONFLICT
Conflict is the perceived difference between two or more parties resulting in mutual opposition.
• Between individuals & organisation
• Causes of conflict
• Benefits and losses from conflict
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–15
MANAGING CONFLICTConflict between individuals andorganisations:
• Organisation efficiency is built on task specialisation, unity of command, formalisation.
• This often requires workers to be passive, dependent & subordinate.
• Individuals may have little control over work and machines may seem to take over control.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–16
MANAGING CONFLICT
Conflict between individuals andorganisations (cont.):
• This conflicts with the needs & expectations of maturing people.
• Therefore, many job structures conflict with a healthy personality’s basic growth needs.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–17
MANAGING CONFLICTConflict between individuals and organisations:
Conflict is strongest
with
Very mature employees
Highlystructured
organisations
Formalised rules and procedures
Fragmentedand
mechanisedjobs
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–18
MANAGING CONFLICT
Choices facing employees in conflict:
• Leave organisation or seek promotion• Use defence mechanisms• Psychologically disassociate• Concentrate on material rewards• Find allies & resist
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–19
MANAGING CONFLICT
Conflict between individuals/organisations:
Leave
Defend
Disassociate
Find distraction
Conflict occurs:Employees must
choose to
Form alliances
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–20
MANAGING CONFLICTCauses of conflict:• Communication factors• Structural factors• Size• Participation• Line–staff distinctions• Reward systems• Resource interdependence• Task interdependence• Power
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–21
MANAGING CONFLICTCauses of conflict (cont.):• Personal behaviour factors• Communication styles• Workforce diversity• Differences in goals• Reward structures• Differences in perceptions• Increased demand for specialists
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–22
MANAGING CONFLICT
Benefits & losses from conflict:
BENEFITS LOSSES
Productive task focus Energy diversion
Cohesion & satisfaction Distorted judgment
Power & feedback Loser effects
Goal attainment Poor coordination
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–23
MANAGING CONFLICTBenefits & losses from conflict
BenefitsProductivetask focus
Cohesion & satisfaction
Power &feedback
Goalattainment
LossesEnergy
diversion
Distorted judgment
Loser effects
Poorcoordination
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–24
MANAGING CONFLICT
Reducing/resolving conflict:• Change situational factors• Appeal to superordinate goals• Interpersonal conflict-handling techniques
– Avoidance– Accommodation– Competition– Compromise– Collaboration
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–25
MANAGING CONFLICT
Managing intergroup conflict through change:• Problem solving• Expansion of resources• Smoothing• Bureaucratic authority• Limited communication• Confrontation & negotiation• Intergroup training
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–26
MANAGING CONFLICTManaging intergroup conflict
Intergroup training Expansion of resources
Bureaucratic authority
Problem solving
Limited communication
SmoothingConfrontation &
negotiationIntergroup conflict
resolution
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–27
RELATIONSHIP BETWEEN CHANGE & CONFLICT• Types of intergroup conflict
– Functional– Dysfunctional
• Changing views on conflict– Traditional view—conflict is destructive &
unnecessary– Modern view—conflict is inevitable, & may
produce better organisational performance
• Stimulating conflictBuild group diversity, communicate to provoke change, encourage competition
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–28
LECTURE SUMMARY
• Managing change– Diagnosing need– Change cycle
• Managing resistance to change– Introducing change– Resistance to change– Managing resistance
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–29
LECTURE SUMMARY
• Managing conflict– Individual-organisational conflict– Causes
• Relationship between conflict & change– Types of intergroup conflict– Changing views on conflict– Stimulating conflict