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Overcoming Resistance to Change
44
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Page 1: Resistance to Change

Overcoming Resistance

to Change

Page 2: Resistance to Change

Learning Objectives (part 1 of 2)

Identify forces within individuals and

organizations that cause resistance to

change.

Recognize strategies that can increase

motivation to change.

Page 3: Resistance to Change

Learning Objectives (part 2 of 2)

Diagnose forces driving and resisting

organization change.

Experience reactions to a change situation.

Page 4: Resistance to Change

Toys Are Mattel (part 1 of 2)

The toy industry is going through radical

change.

Mattel has history of nearly falling apart every

decade since the 1970s.

Page 5: Resistance to Change

Toys Are Mattel (part 2 of 2)

CEO Eckert moving Mattel to redefine core

business.

• Better control inventory

• Streamline manufacturing

• Develop more toys in-house.

Expand overseas as toys mature in the U.S.

Page 6: Resistance to Change

Change and Reinvent (part 1 of 2)

Many organizations being forced to radically

change.

Organizations face major challenge in

managing change.

Page 7: Resistance to Change

Change and Reinvent (part 2 of 2)

Organizations need capacity to adapt quickly.

People are focus of most serious challenges.

Large scale changes often incur significant

problems and challenges.

Page 8: Resistance to Change

Changes on Personal Level

Set patterns of behavior.

Defined relationships with others.

Work procedures, and job skills.

Page 9: Resistance to Change

Changes on Organizational Level

Policies.

Procedures.

Organization structures.

Manufacturing processes.

Work flows.

Page 10: Resistance to Change

Life Cycle of Resistance to Change (part 1 of 5)

The response to change tends to move through

a life cycle of 5 phases:

Phase 1.

Only few people who see need for

change.

Resistance appears massive.

Page 11: Resistance to Change

Life Cycle of Resistance to Change (part 2 of 5)

Phase 2.

Forces for and against change become

identifiable.

Change more thoroughly understood.

Novelty of change tends to disappear.

Page 12: Resistance to Change

Life Cycle of Resistance to Change (part 3 of 5)

Phase 3.

Direct conflict and showdown between

forces.

This phase probably means life or death

to change.

Page 13: Resistance to Change

Life Cycle of Resistance to Change (part 4 of 5)

Phase 4.

Remaining resistance seen as stubborn.

Possibility that resisters will mobilize

support to shift balance of power.

Page 14: Resistance to Change

Life Cycle of Resistance to Change (part 5 of 5)

Phase 5.

Resisters to change are as few and as

alienated as were advocates in first

phase.

Page 15: Resistance to Change

Major Factors AffectingSuccess of Change

Advocates of

change

Degree of change

Time frame

Impact on culture

Evaluation of

change.

Page 16: Resistance to Change

Figure 6.1Change Factors

Page 17: Resistance to Change

Advocates of Change

Person leading change program is often most

important force for change.

Internal or external OD practitioners may be

brought in to assist.

Page 18: Resistance to Change

Degree of Change

Is change minor or major?

The greater the degree of change, the more

difficult it is to implement.

Page 19: Resistance to Change

Time Frame

Greater chance of success if change is gradual

and in longer time frame.

Some organizations only chance for survival

depends on radical change introduced swiftly.

Page 20: Resistance to Change

Impact on Culture

The greater the impact on existing culture,

the greater the resistance and difficulty to

implement change.

Page 21: Resistance to Change

Evaluation on Culture

Standards of performance developed to

measure change and impact on

organization.

Page 22: Resistance to Change

A Change Model (part 1 of 5)

Two major considerations in organizational

change are:

Degree of change.

Impact on organization’s culture.

Page 23: Resistance to Change

Figure 6.2Change Model

Page 24: Resistance to Change

A Change Model (part 2 of 5)

Quadrant 1

Minor change, minor impact on culture.

Resistance will be at lowest level and success

will be most probable.

Page 25: Resistance to Change

A Change Model (part 3 of 5)

Quadrant 2

Minor change, major impact on culture.

Some resistance can be expected.

Page 26: Resistance to Change

A Change Model (part 4 of 5)

Quadrant 3

Major change, minor impact on culture.

Some resistance is likely.

Good management can probably overcome it.

Page 27: Resistance to Change

A Change Model (part 5 of 5)

Quadrant 4

Major change, major impact on culture.

The greatest resistance can be predicted.

The probability of success is low.

Page 28: Resistance to Change

Driving Forces Toward Acceptance of Change

Driving forces are anything that increases

organization to implement proposed change.

Driving forces include:

• Dissatisfaction with present situation.

• External pressures toward change.

Page 29: Resistance to Change

Momentum Toward Change

Once change underway, certain forces tend to

push change along.

Those involved probably become committed.

When money is committed to start a change,

organization likely will want to continue.

Change in one part of organization may set off

chain reaction in other parts.

Page 30: Resistance to Change

Motivation by Management

Manager or advocate of change becomes

motivating force.

Top management’s encouragement can

motivate change.

Page 31: Resistance to Change

Our Changing World:Globalization of World’s

Business?(part 1 of 3)

Globalization has occurred for hundreds of

years but recently experienced exponential

growth.

Page 32: Resistance to Change

Our Changing World (part 2 of 3)

Reasons for Increase Include:

• Improvements in communications and

transportation.

• More efficient global banking systems.

• Surpluses in capital in US, Japan, Europe.

• Worldwide lowering of trade barriers.

Page 33: Resistance to Change

Our Changing World (part 3 of 3)

Statistics of globalization include:

• By 2000 number of MNCs above 63,000.

• 1,000 largest MNCs account for 80% of

world’s industrial production.

• MNCs are based all over world:

US 37%. Japan 21%. Europe 25%.

Also based in developing countries.

Page 34: Resistance to Change

Restraining Forces Blocking Implementation of Change

(part 1 of 2)

Uncertainty regarding change.

Fear of unknown.

Disruption of routine.

Loss of benefits.

Page 35: Resistance to Change

Restraining Forces Blocking Implementation of Change

(part 2 of 2)

Threat to security.

Threat to position power.

Redistribution of power.

Disturb existing social networks.

Conformity to norms and culture.

Page 36: Resistance to Change

Driving Forces and Restraining Forces Act in Tandem

Effective change programs increase driving

forces and decrease restraining forces.

Force-field analysis model (see Ch 5) is useful

way to view driving and restraining forces.

Page 37: Resistance to Change

Strategies to Lessen Resistance(part 1 of 2)

Education and communication.

Create a vision.

Participation and involvement of members.

Facilitation and support.

Negotiation and agreement.

Page 38: Resistance to Change

Strategies to Lessen Resistance(part 2 of 2)

Leadership.

Reward systems.

Explicit and implicit coercion.

Climate conducive to communications.

Power strategies.

Page 39: Resistance to Change

OD In Practice: How Dupont Shortened Its Stove-pipes (part 1 of 3)

Industrial Polymers Division (IPD) shows how

DuPont can change.

Products “out-dated.”

Problems included low morale and low

productivity.

Top and middle management understood need

to improve.

Page 40: Resistance to Change

OD in Practice (part 2 of 3)

Only major change would improve division.

Forces for change included:

People aware of average performance.

They had desire to turn things around.

Widely held belief that survival of division and

personnel hung in balance.

Page 41: Resistance to Change

OD in Practice (part 3 of 3)

Vision statement was developed by employees.

Plans made to implement team efforts and self-

management.

No customary “stove-pipe” hierarchy of

supervisors and no formal departments.

Page 42: Resistance to Change

Keywords and Concepts

Driving forces - increases client system to

implement proposed change.

Employee stock ownership plan (ESOP) -

grant stock or stock options to broad section

of employees.

Page 43: Resistance to Change

Gain sharing - reward system that recognizes

value of specific group.

Knowledge-based pay - reward system based

on the knowledge or skills a worker has.

Open-book management - employees see

company’s financial records to analyze

problems for themselves.

Page 44: Resistance to Change

Power strategies - technique for lessening

resistance to change that uses power

structure in an organization.

Profit-sharing - uses the performance of

business to calculate employee pay.

Restraining forces - forces that block

implementation of a change program.