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Organizational Change and Development

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Organizational

BEHAVIOR

F I F T E E N

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Why do organizations change?

Unplanned Change
Managers dont expect it Can lead to chaotic, uncontrolled periods of change

Planned Change
Systematic efforts by managers to move organizations to a new state Design, technology, tasks, people, information systems, etc.
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External Forces for Change

Computer technology
law of telecosm effect on knowledge, competition, employment relations

Globalization and local competition

effect on restructuring, outsourcing mergers

Demography
Corel Corp. With permission.

diversity emerging expectations

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Internal Forces For Change

Turnover of leaders Need for profits _______________ _________________ ________________

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Types of Planned Change

Evolutionary Change
Incremental adaptation to the external environment Series of phases
Need for change Unfreeze Change (or move) Refreeze

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Types of Change (cont)

Revolutionary Change
Unfolds over long periods of time Equilibrium periods: organization moves steadily toward its mission and goals Revolutionary periods: Feverish change that affects the overall strategy of the firm
Deep structures are affected like culture, design, processes, and relationships with the environment

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Resistance to change
People and Organizations resist changes from both internal and external sources and planned and unplanned change Managers reaction
See resistance as a problem
Treat it coercively Added resistance

See resistance as a signal

People need more information, or better treatment Gather insights from people
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Slide 18.6 Sources of Resistance to Change

Individual Resistance * Perception * Personality * Habit * Threats to power and influence * Fear of the unknown * Economic reasons

Organizational Resistance * Organization design * Organizational culture * Resource limitations * Fixed investments * Interorganizational agreements

Resistance to Change
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Slide 18.5 Employee Readiness for Change Perceived Personal Risk from Change Low Level of Dissatisfaction with the Current Situation High High

High readiness for change

Moderate to indeterminant readiness for change Low readiness for change

Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the chances for success. Organizational Dynamics, Spring 1989, 37. Irwin/ McGraw-Hill 9
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Low

Moderate to indeterminant readiness for change

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Resistance to Change
Direct Costs Saving Face Forces for Change Fear of the Unknown Breaking Routines Incongruent Systems Incongruent Team Dynamics
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Slide 18.4 A Systems Model of Change

People

Culture

Task

Technology

Design
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Slide 18.7 Force Field Analysis

Driving forces High performance goals New equipment Competition Employees with new skills Desire for increased influence and rewards Current level of group performance Resisting forces Group norms for output Familiarity with present equipment Complacency Need to learn new skills Fear of reduced influence and rewards Desired level of group performance

Source: Adapted from Zand, D.E. Force field analysis. In N. Nicholson (ed.), Blackwell Encyclopedic Dictionary of Organizational Behavior. Oxford, England: Blackwell, 1995, 181. Irwin/ McGraw-Hill 12
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Slide 18.3 Initiatives Contributing to Effective Change Management Motivating Change Creating a Vision Developing Political Support Managing the Transition Sustaining Momentum
Source: Adapted with permission from Cummings, J.G., and Worley, C.G. Organization Development and Change, 6th ed. Cincinnati: South-Western, 1997, 154. Irwin/ McGraw-Hill 13
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Effective Change Management

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Successfully Diffusing Change

Successful pilot study Favorable publicity Top management support Labor union involvement Diffusion strategy described well Pilot program people moved

Courtesy of Roberts Express

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Customer-Driven Change at Continental Airlines

Continental Airlines executives created an urgency to change by listening to customers and communicating their concerns to employees. Customer-driven change motivates employees to engage in continuous change.
Courtesy of Continental Airlines

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Minimizing Resistance to Change

Communication

Coercion

Training

Negotiation

Minimizing Resistance to Change

Stress Management

Employee Involvement

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Refreezing the Desired Conditions

Creating organizational systems and team dynamics to reinforce desired changes
alter rewards to reinforce new behaviors new information systems guide new behaviors recalibrate and introduce feedback systems to focus on new priorities

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Organization Development
A planned system wide effort, managed from the top with the assistance of a change agent, that uses behavioral science knowledge to improve organizational effectiveness.

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Action Research Process

Establish ClientConsultant Relations

Diagnose Need for Change

Introduce Change

Evaluate/ Stabilize change

Disengage Consultants Services

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Appreciative Inquiry Process

Discovery Dreaming Forming ideas about what might be Designing Engaging in dialogue about what should be Delivering Developing objectives about what will be

Discovering the best of what is

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Parallel Structures
Parallel Structure Organization

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Organization Development Concerns

Cross-Cultural Concerns
Linear and open conflict assumptions different from values in some cultures

Ethical Concerns
Management power Employee privacy rights Employee self-esteem Consultants role

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