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Organizational Change and Development: Michael A. Hitt C. Chet Miller Adrienne Colella
Organizational Change and Development: Michael A. Hitt C. Chet Miller Adrienne Colella
Starbucks is faced with new challenges today. It has dominated the marketplace. Have they grown too fast? Will changes in the marketplace Dave Olsen require a different approach? What do you think the future will hold for them?
Dawn Pinaud
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Can you think of any other companies that were too slow to change and suffered the consequences? Why is change so difficult to manage?
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Knowledge Objectives
1. Describe two major internal pressures for change. 2. Identify and explain six major external pressures for change 3. Describe the three-phase model of planned change. 4. Discuss important tactical choices involving the speed and style of a change effort. 5. Explain the four general causes of resistance to change and the tactics that can be used to address each cause. 6. Discuss the role of the DADA syndrome in organizational change. 7. Describe the basic organization development (OD) model and discuss OD interventions, including relationship techniques and structural techniques.
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Technological Advances
Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change
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Aspiration-Performance Discrepancies
Gaps between what an individual, unit, or
organization wants to achieve and what it is actually achieving.
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Life-Cycle Forces
Natural and predictable pressures that build as an organization grows and that must be addressed if the organization is to continue to grow.
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Collectivity Stage
Elaboration Stage
Adapted from Exhibit 14-2: Integrative Life-Cycle Model
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Managerial Advice
Are companies becoming more green for reasons other than the bottom-line? Give some examples. What is your organization doing to become more green? What are you doing personally? Should becoming green be a choice or is legislation needed to make it happen?
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Planned Change
A process involving deliberate efforts to move an organization or a unit from its current undesirable state to a new, more desirable state
Awakening Energizing Unfreezing
Mobilizing
Envisioning
Moving
Reinforcing
Enabling
Refreezing
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Unfreezing
Provide rationale
for change Create minor levels of guilt/anxiety about not changing Create sense of psychological safety concerning change
Moving
Provide information
that suspects proposed changes Bring about actual shifts in behavior
Refreezing
Implement new
evaluation systems Create minor levels of guilt/anxiety about not changing Implement new hiring and promotion systems
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What are your thoughts about the Neville Isdell steps they are taking regarding Sandy Douglas these changes? Do you think the new innovations and changes will have a positive or a negative impact on their existing brands? Why? What other changes would you suggest to help them remain competitive?
Experiencing Strategic OB
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Sources of Failure
1. Managers and associates should not expect all change activities to occur sequentially. 2. A team of change leaders, rather than a single individual, should guide an organization through a major change effort.
In addition to size, four factors to consider when forming change teams:
Position Power
John Kotter
Expertise
Speed of Change
Urgency Degree of support
Criteria to Consider
Competitive environment
Knowledge and skills available
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Style of Change
Non-participatory top down, leaders design the change and plan its implementation
Participatory change leaders seek the ideas and advice of associates and then use many of those ideas. Criteria for evaluating the degree to which the participatory style should be used:
Degree of Support Referent and Expert Power of Leaders
Urgency
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Resistance to Change
Effort to block new ways of doing things
Four Factors
Lack of understanding Different assessments
Self-interest
Experiencing Strategic OB
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Feedback
Introduction of interventions
Progress Monitoring
Adapted from Exhibit 14-4: Basic Organization Development Model
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Relationship Techniques
T-group Training
Team Building
Survey Feedback
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Job Redesign
Structural Techniques
Organizational Learning
Exploitative Learning Exploratory Learning
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Questions
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