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Chapter Learning Objectives

After studying this chapter you should be able to:

1. Summarize the dominant forces for change in


organizations.
2. Describe the process of planned organization change.
3. Discuss several approaches to organization development.
4. Explain resistance to change.
5. Identify the keys to managing successful organization
change and development.

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Forces for Change

Areas of Pressure
for Change

Information
People Technology Processing and Competition
Communication

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Table 19.1 Pressures for Organization Change
CATEGORY EXAMPLES TYPE OF PRESSURE FOR CHANGE

People Generation X, Y, Millennials Demands for different training,


Global Labor Supplies benefits, workplace arrangements,
Senior citizens and compensation systems
Workforce diversity

Technology Manufacturing in space More education and training for


Internet workers at all levels, more new
Global design teams products, products move faster to
market

Information Computer, satellite Faster reaction times, immediate


Processing and communications responses to questions, new products,
Communication Global Sourcing different office arrangements,
Videoconferencing telecommuting, marketing, advertising,
Social Networking recruiting on social networking sites

Competition Global markets Global competition, more competing


International trade agreements products with more features and
Emerging nations options, lower costs, higher quality

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Forces for Change
• People:
• Baby boomers (1946-1964)
• Generation X (1965-1976)
• Generation Y (1977-1994)
• Millennials 1995+
• Also, the increasing diversity of the workforce in coming years will mean
significant changes for organizations.
• Employees are facing a different work environment in the 21 century.
• This most descriptive word for this environment is “change”- which means
that employees must be prepared for constant change.
Technology:
Not only is technology changing, but the rate of technological change is also
increasing.
Forces for Change

• Information processing and communication:


• Today people carry a device in their pocket that serves as
their portable computer, e-reader, pocket-size television..etc.
• Social networking may be the most radical and fastest-growing
aspect of the advances in information processing and
communication.
• Also, employees don not need offices because they work with
computers and communicate through new data transmission
devices and working from home instead of going to the office
every day (telecommuting).
Forces for Change
• Competition:
• Most market are global because of decreasing transportation and
communication costs and the increasing export orientation of business.
• The adoption of NAFTA and WTO have changed the way business
operates.
• Competition from industrialized countries such as Japan and Germany will
take a back seat to competition from booming industries of developing
countries such as China and India.
• Companies of developing nations may soon offer different, newer, cheaper,
or high-quality products while enjoying the benefits of low labor costs,
abundant supplies of raw materials, expertise in certain areas of production,
and financial protection from their governments that may not be available for
firms in older industrialized states.
Processes for Planned
Organization Change
• The organization need not only to respond to change, but they have to
anticipate it, prepare for it through planning, and incorporate it in the
organization strategy.
• Lewin’s Process Model:
– Planned organization change requires a systematic process of
movement from one condition to another
• Unfreezing
– Process by which people become aware of the need for change
• Change
– Movement from the old way of doing things to a new way
• Refreezing
– Process of making new behaviors relatively permanent and
resistant to further change

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FIGURE 19.1 Lewin’s Process of Organizational Change

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Processes for Planned Organization
Change (cont’d)
• The Continuous Change Process Model
• Because Lewin’s model does not deal with several important issues, a more
complex and helpful model developed.
• This model treat planned change from the perspective of top management
and indicates that change is continuous.
–Incorporates the forces for change, a problem-solving
process, a change agent, and transition management
–Takes a top management perspective
• Perceives forces and trends that indicate need for change
• Determines alternatives for change
• Selects the appropriate alternative
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FIGURE 19.2 Continuous Change Process Model of Organization Change

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Processes for Planned Organization
Change (cont’d)
• The Continuous Change Process Model (cont’d)
–Change agent: a person responsible for managing a
change effort
• Assists management with problem recognition/definition
• Can be involved in generating/evaluating potential action plans
• Can be from inside or outside of the organization
• Implements the change
• Measures, evaluates, controls the desired results
–Transition management
• Process of systematically planning, organizing, and
implementing change

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Organization Development
• Organization Development (OD):
– Is a system-wide application of behavioral science knowledge to the
planned development and reinforcement of organizational strategies,
structures, and process for improving an organization’s effectiveness.
– Three points in this definition make it simple to remember and use:
– First: OD involves attempt to plan organization changes, which exclude
spontaneous, haphazard initiatives.
– Second: the purpose of OD is to improve organization effectiveness,
which excludes changes that just to imitate those of another organization,
are forced on the organization by external pressures, or are undertaken
just for the sake of changing.
– Third: the planned improvement must be based on the knowledge of the
behavioral sciences such as organizational behavior, psychology,
sociology, cultural anthropology, and related fields of study rather than on
financial or technological considerations.
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Organization Development
• The three most basic types of techniques for implementing OD are system-
wide, task and technology, and group and individual.
• System-Wide Organizational Development
–Structural Change
• Is a comprehensive system-wide rearrangement of task division,
authority, reporting relationships
• Affects performance appraisal and rewards, decision-making,
communication, information-processing systems
• Reengineering and rethinking the organizations are two contemporary
approaches to system-wide structural change.
• Reengineering can be difficult process, but it has great potential for
organizational improvement.
Organization Development (cont’d)

Contemporary Approaches
to System-Wide OD

Quality of
Reengineering Rethinking
Work Life

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Organization Development

• Another system-wide change is the introduction of quality-of-


work-life programs.
• Quality of work life: is the extent to which workers can satisfy
important personal needs through their experience in the
organization.
• Quality-of-work-life programs focus strongly on providing a
work environment conducive to satisfying individual needs.
• Top management viewed improving life at work as a means
to improve productivity.
• The quality-of-work-life programs vary substantially, although
most adopt a goal of “humanizing the workplace”.
Richard Walton’s Categorization of Quality-of-Work-Life
FIGURE 19.3
Programs

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Organization Development (cont’d)

• Task and Technological Change


• Another way to bring about system-wide organization development is
through changes in the tasks involved in doing the work, the technology, or
both.
– Task redesign
• Direct alterations of jobs.
–Technological change
• Changing how inputs are transformed into outputs which also result
in task changes.

Strictly speaking, changing the technology is typically not part of


organization development whereas task redesign usually is.

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Organization Development (cont’d)

• Griffin’s integrated framework for introducing job


changes
• Nine steps that reflect the complexities of the interfaces between
individual jobs and the total organization
Table 19.2 Integrated Framework for Implementation
of Task Redesign in Organizations

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Organization Development (cont’d)

• Group and individual change


Training

Management
Development
People-Oriented
Change Techniques
Team Building

Survey Feedback
Organization Development (cont’d)

• Training:
–Purpose:
• Improve employees’ current job skills or impart new skills
–Methods:
• Lecture, discussion, lecture-discussion combination, experiential
methods, case studies, films/video tapes
–Locations:
• Classroom, on and off company property, at a hotel, resort, and
conference centers, and on-the-job
–Major difficulty:
• A major problem of training programs is transferring employee
learning to the work place. When employees return to the normal
work situation, they find it easier to go back to the old way of doing
things.
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Organization Development (cont’d)

• Management Development:
• Management development programs, like employee training programs,
attempt to foster certain skills, abilities, and perspectives.
• When a highly qualified technical person is promoted to manager of a work
group, he or she needs training in how to manage and deal with people.
• Rapid changes in the external environment can make certain managerial
skills obsolete in a very short time, therefore, some companies are
considering the development of their management as an ongoing, career-
long process and require the managers to attend refresher courses
periodically.

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Organization Development (cont’d)
– As corporate America invests hundreds of millions of dollars in
management development, certain guiding principles are evolving:
1- Multifaceted, complex, long-term process with no quick and simple
approach:

2- Organizations should identify carefully and systematically


their unique development needs and existing programs
3- Management development objectives must be compatible
with organizational objectives
4- The utility and value of management development is not
proven
Organization Development (cont’d)

• Team Building:

Team Building Goals

To set team To analyze To examine To examine


goals and and allocate how a group relationships
priorities the way work is working among those
is performed doing the
work
Organization Development (cont’d)

• Survey Feedback:
–Provides information about employees’ beliefs and attitudes
–Can assist management with problem-solution diagnosis
–In an organization development process, data:
1- returned to employee groups at all organization levels
2- used by all employees working together in their normal
work groups to identify/solve problems.
 The survey feedback method is probably one of the most
widely used organization change and development
interventions.

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FIGURE 19.4 The Survey Feedback Process

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Resistance to Change
• Change is inevitable; so is resistance to change.
• Paradoxically ( in contradiction), organizations both promote and resist
change.
– Organizations invite change when change offers competitive advantage
– Organizations resist change when change threatens the organization’s
structure and control systems
– Organizations must have some elements of balance stability
(permanence) to avoid mirroring the instability of the environment, yet it
must also react to external shifts with internal change to maintain
currency and relevance in the marketplace..
– Resistance to change can be used for the benefit of the organization and
need not be eliminated entirely.
– Resistance to change may come from the organization, the individual, or
both.
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Resistance to Change:
Sources of Resistance to Change
(Daniel Katz and Robert Kahn)

• Organizational Sources • Individual Sources


– Overdetermination – Habit
– Narrow focus of change – Security
– Group inertia – Economic factors
– Threatened expertise – Fear of the unknown
– Threatened power – Lack of awareness
– Resource allocation – Social factors
changes

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Table 19.3 Organizational and Individual Sources of Resistance

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Managing Successful Organization
Change and Development

• Keys to Managing Change in Organizations


–Consider international issues
–Take a holistic view
–Start small
–Secure top management support
–Encourage participation by those affected by the
change
–Foster open communication
–Reward those who contribute to change
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Table 19.4 Keys to Managing Successful Organization Change and Development

KEY IMPACT

Consider global issues. Keeps in touch with the latest global developments and
how change is handled in different cultures

Take a holistic view of the Helps anticipate the effects of change on the social
organization. system and culture

Start small. Works out details and shows the benefits of the change
to those who might resist

Secure top management Gets dominant coalition on the side of change:


support. safeguards structural change, heads off problems of
power and control

Encourage participation by Minimizes transition problems of control, resistance, and


those affected by the change. task redefinition

Foster open communication. Minimizes transition problems of resistance and


information and control systems

Reward those who contribute Minimizes transition problems of resistance and control
to change. systems

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Organizational Behavior in Action
• After reading the chapter:
–Which pressures for organizational change are likely to
increase when economic conditions decline? When they
improve?
–Which individual source of resistance to change likely
causes students to perform poorly in school? How could
the resistance be overcome?

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