5/10/19

OBJECTIVES
• Describe the process, reasons, and importance of organizational change.

ORGANIZATION DEVELOPMENT • Explain the importance of organizational culture.

• Determine when empowering employees is a good idea.

• Summarize the types of flexible work schedules.

• Discuss the phenomenon and effect of layoffs.

WHAT IS ORGANIZATIONAL
OUTLINE DEVELOPMENT?
• Managing Change • It is the process of improving organizational performance by making
organization-wid e, rather than individual, changes.

• Empowerment

• Flexible Work Arrangements

• Downsizing

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SACRED COW HUNTS

• Sacred cow hunt – employees look for practices and policies that waste time
and are counterproductive .

MANAGING CHANGE
• Some questions:
• Why are we doing it? Does it add value, quality, service, or productivity?
• What if it didn’t exist?
• Is it already being done by someone else?
• How and when did we start doing this?
• Can it be done better by another person, department, or company?

• Examples: paper cow, meeting cow, speed cow

EMPLOYEE ACCEPTANCE OF EMPLOYEE ACCEPTANCE OF

CHANGE CHANGE
• Important Factors
• 3 stages that organizations go through during org’l change (Lewin, 1958):
• Type of change (evolutionary vs. revolutionary)
• Unfreezing – org must convince employees that change is necessary
• Moving – org takes steps to toward the desired state • Reason behind the change
• Refreezing – org develops ways to keep new changes in place • Person/leader making the change
• Person being changed
• 5 stages that employees go through during org’l change (Carnall, 2008) • Change agent – enjoys change and often makes changes just for the sake
of it.
• Denial
• Defense
• Change analyst – not afraid to change or make changes but only when
there is compelling reason to do so.
• Discarding
• Receptive changer – will initially resist change but will eventually go along
• Adaptation with it.
• Internalization • Change resister – hates change and will do anything to keep change from
occurring.

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IMPLEMENTING CHANGE ORGANIZATIONAL CULTURE

• The shared values, beliefs, and traditions that exist among
• Create atmosphere for change
individuals in an organization.
• Communicate details
• Set time frame
• How do we change organizational culture?
• Train employees
• Assess the new culture
• Create dissatisfaction with existing culture
• Maintain the new culture
• Select employees who epitomize the new culture
• Organizational socialization – process whereby new employees learn the
behaviors and attitudes they need to be successful in an organization; may
be formal (e.g., rituals or symbols) or informal (e.g., sharing stories).

MAKING THE DECISION TO

EMPOWER
• Factors in Making the Decision to Empower (Vroom & Yetton, 1973)
• Importance of decision quality
EMPOWERMENT • Leader knowledge of the problem area
• Structure of the problem
• Importance of decision acceptance
• Probability of decision acceptance
• Subordinate trust and motivation
• Probability of subordinate conflict

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MAKING THE DECISION TO

EMPOWER LEVELS OF EMPLOYEE INPUT
• Absolute: Employee has sole responsibility for making decisions and responsible
• Decision- Making Strategies Using the Vroom-Yetton Model Hi gh l evel for the outcomes of decisions
• Autocratic I strategy – leaders use available info to make a
decision without consulting subordinates • Shared/Participative/Team: Employee has an equal vote in making decisions;
• Autocratic II strategy – leaders obtain necessary info from reaches consensus with others to make decisions
subordinates and then make their own decisions
• Consultative I strategy – leaders share the problem on an individual • Advisory: Employee makes recommendations, suggests new ideas, provides input
basis with their subordinates and then make a decision that may or
may not be consistent with the thinking of the group
• Consultative II strategy – leaders share the problem with the group • Ownership of product: Employee becomes responsible for own quality
as a whole and then make a decision that may or may not be
consistent with the thinking of the group
• Following: Work is closely checked/approved by others. Employee is closely or
• Group I strategy – leaders share the problem with the group and let Low l ev el constantly supervised
the group reach a decision/solution

CONSEQUENCES OF
EMPOWERMENT CHARTS EMPOWERMENT
• A chart made for each employee that shows what level of input the • Increased job satisfaction for most
employee has for each task.
Personal • Stress (decreased due to greater control
or increased due to greater responsibility)
• Reduces confusion and provide a systematic plan for providing employees

Financial
with more autonomy as their skills and experience increase. • Bonuses
• Pay increases

• Inc re as e d job s e c urity

Career • Promotions
• Inc re as e d marke tability
• Inc re as e d c hanc e of be ing te rminate d

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FLEXIBLE WORK SCHEDULES CAN LEAD

TO POSITIVE OUTCOMES UNDER THE
RIGHT CONDITIONS
Flexible Work Positive Outcomes If:
Arrangements
FLEXIBLE WORK ARRANGEMENTS Flextime
Compressed workweeks Lower absenteeism The employee wants
Lower turnover flexibility
Reduced hours
Higher productivity Management is
Part-time work
Higher job satisfaction supportive
Peak-time pay
Better work-life balance The job itself allows for
Casual work Lower commuting costs flexibility
Job sharing
Work from home

• Layoffs can be avoided by using temporary employees, outsourcing,

offering early retirement programs, and creating alternative work
schedules.
DOWNSIZING
• There is a proper way to conduct layoffs.

• Layoffs have negative effects on victims, survivors, the organization,

and the community.