Organizational

Behavior
(MGT-502)

Lecture-38
Summary
of
Lecture-37
Organizational
Change
Change or
Disappear
Forces For Change
External Forces
• Economic Forces
• Technology
• Social and Political Change

• Process
• Behavioral

Internal Forces
 Types of Change

Planned Unplanned

Evolutionary Revolutionary
Today’s Topics
 Rate of Technological Change
Change Rate

2,500,000 B.C. 1,000,000 B.C. 2,000 A.D.

 Resistance To Change

Individuals
Habit
Fear of unknown
Economic threat
New social relationships
Dislike of change agent
Dislike of implied criticism

Organizations
Threats to power
Resource limitations
Fixed investments
 Driving Forces

Changing technology

Knowledge explosion

Rapid product obsolescence

Changing nature of workforce

Changing values
 Overcoming Resistance

Coercion Resist

Manipulation

Negotiation Tolerate

Education

Participation Accept

Facilitation
& Support
Support
Minimizing Resistance to
Change
Communication

Coercion Training
Minimizing
Resistance
Negotiation
to Change Employee
Involvement

Stress
Management
Managing Organizational
Change
The Three C’s of Change

• Customers take charge

• Competition intensifies
• Change becomes constant
A continuous challenge as
customer expectations change
and can sometimes change
faster than organizations can
respond
 The New World of Work
• Peoples’ roles change - from controlled to empowered
• Job preparation changes - from training to education
• Focus of performance measures and compensation
shifts - from activities to results
• Advancement criteria change - from protective to
productive
• Managers change - from supervisors to coaches
• Organization structures change - from hierarchical to
flat
• Executives change - from scorekeepers to leaders
 Change Can Be….
• Huge, catastrophic • Small, incremental
• Predictable • Unpredictable
• Positive • Negative
• Productive • Unproductive
• A small modification • A devastating collapse
to your life of your world
• Taken in stride, managed • Continuously stressful
 Some External Forces for
Change
• Easier information transfer
Information
Technology • Facilitates global structures
• Requires new competencies
Globalization and expectations
& Competition
• Facilitates telecommuting;
new employment relationships
Demography • More emphasis on knowledge
management
 Some External Forces for
Change
Information
Technology • Global competition
• Technology makes it easier to
Globalization compete quickly
& Competition
• Results in restructuring,
outsourcing, mergers
– produces many employment
Demography changes
 Some External Forces for
Change
Information
Technology
• More educated workforce
– want involvement; interesting work
Globalization
& Competition • Younger generation
– less intimidated by status
– want a more balanced work life
Demography
• Cultural changes
– more individualism in traditionally
collectivist countries
Areas Where Change Can
Occur
• Change Technology
• Change the Organization’s Structure
or Design
• Change Job Responsibilities or tasks
performed
• Change People
Change Management Concept Model

Strategy
Organizational Structure
Business Models/Systems

Business Processes

People
Change Management Success
Factors
People

Business Processes

Business Models/Systems

Organizational Structure
Strategy
Change Management Risk Alignment

People

Business Processes

Business Models/Systems

Organizational Structure
Strategy
 The Change Agent’s Role
Change agent - the individual
or group who undertakes the
task of introducing and
managing a change in an
organization
The change agent can be internal or external
 The Change Agent
 Generators
 key change agents
 demonstrators
 patrons
 defenders
 Implementers
 external
 internal
 Adopters
 early adopters
 maintainers
 users
 Internal Change Agents
Advantages Disadvantages
 Better knowledge of the  May be too close to the
problem
organization  May be biased
 Available more quickly  May be viewed a part of the
 Lower out-of-pocket problem
 Not available for previous job
costs
 Vested interest may reduce
 A “known” quantity credibility
 More control & authority
 External Change
Agents
Advantages Disadvantages
 More objective views  Less knowledge of the
 More diverse organization
experience  Requires higher out-of-
 May have more pocket costs
specific experience  An unknown quantity
and knowledge
 Longer start-up time
 Hurts management’s image
 What Can Change
Agents Change?
• Structure
– Change Agents can alter one or more of the key elements
in a an organization's design.
• Technology
– Competitive factors or innovations within an industry often
require change agents to introduce new equipment, tools,
or operating methods.
– Physical Settings
• People
– Change agents help individuals and groups within the
organization work more effectively together.
The Change Process
 Two perspectives
 “Break it”- ‘Change it” - ‘Freeze it”
 Continuous renewal

 Forces of change
 Internal
 External
Organizational Change

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

 t o p
s s
et ’ r e
L th e
i
Summary
Managing Organizational
Change
 The Change Agent’s Role
Change agent - the individual
or group who undertakes the
task of introducing and
managing a change in an
organization
The change agent can be internal or external
Organizational Change

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

Next….
Organizational
Behavior
(MGT-502)

Lecture-38