Chapter 18

Nelson & Quick

Managing Change
 Organizational Change

Planned Change - Unplanned Change -

change resulting change that is imposed
from a deliberate on the organization
decision to alter the and is often
organization unforeseen

Managers must be
prepared to handle both
 External Forces for Change

Globalization Workforce
Diversity

Changing Ethical
Technology Behavior
 Globalization

Organizations must rethink

the most efficient ways to
Majority of
Use resources
new workers
Disseminate/gather information
will be female
Develop people
Workforce will
grow in diversity -
Structural more Hispanics &
Change African-Americans
&
Workforce is aging -
Mental less young workers, more
Change middle-aged
Workforce
Diversity
 Ethical
Behavior Other Organizations

Customers
Ethical
Treatment Changes
Environment in work
relationships

Society Technological
Change
Changes in
Changing organizational
Technology structure
 Internal Forces for Change

Company
Declining
Crisis
Effectiveness

Changing
Changing Employee
Work Climate Expectations
 Scope of Change

Incremental Change - change of a relatively small

scope, such as making small improvements
Strategic Change - change of a larger scale, such as
organizational restructuring
Transformational Change - change in which the
organization moves to a radically different, and
sometimes unknown, future state
 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

 Internal Change Agents

Advantages Disadvantages
 know past history,  may be associated

political system, and with factions,

culture accused of
 must live with favoritism
results of change so  may be too close to

will move carefully the situation to be

objective
 External Change Agents

Advantages Disadvantages
 outsider’s objective  limited knowledge

view of organization’s
 impartiality history
 may be viewed with

suspicion
To succeed, they must be perceived as trustworthy,
be experts with proven track records, be similar to
those they are working with
 Resistance to Change

 Fear of the unknown

 Fear of loss
 Fear of failure
 Disruption of interpersonal relationships
 Personality conflicts
 Politics
 Cultural assumptions and values
 Dealing with
Resistance to Change
 Communication
 details

 rationale

 Participation in the process

 ownership

 commitment

 Empathy and support

 Reactions to Change & Managerial Interventions
Reaction Expression Managerial
Intervention
Disengagement Withdrawal Confront, identify
psychological withdrawal
from change
Disidentification Sadness, worry Explore, transfer
feeling that one’s
identity is being
threatened by change
Disenchantment Anger Neutralize,
feeling negativity or acknowledge
anger toward a change
Disorientation Confusion Explain, plan
feelings of loss and
confusion due to change
Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15.
Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.
 Lewin’s Three Step Change
Model
1. Unfreezing - involves encouraging individuals to
discard old behaviors by shaking up the
equilibrium state that maintains the status quo
2. Moving - new attitudes, values, and behaviors are
substituted for old ones
3. Refreezing - involves the establishment of new
attitudes, values, and behaviors as the new status
quo
 Force Field Analysis of Decision to
Engage in Exercise
Forces for change Forces for status quo
Weight gain Lack of time
Minimally passing No exercise facility at
treadmill test work
Feel lethargic; Spouse/partner hates to
have no energy exercise
Equilibrium
No interest in physical
Family history of
activity or sports
cardiovascular
disease Made a grade of D in
physical education class
New, physically
demanding job
 Applying Lewin’s Model to the
Organization
 Unfreezing: the organization eliminates rewards for
current behavior
 Moving: the organization initiates new options and
explains their rationale
 Refreezing: organizational culture & formal reward
systems encourage the new behaviors
Organizational Development (OD)

Organizational Development (OD) - a systematic

approach to organizational improvement that
applies behavioral science theory and research in
order to increase individual and organizational
well-being and effectiveness
 Diagnosis & Needs Analysis

Diagnosis and Intervention

needs analysis

Follow-up

Ask
• What are the forces for change?
• What are the forces preserving the status quo?
• What are the most likely sources of resistance?
• What are the goals to be accomplished by change?
 OD Intervention Methods:
Organizational/Group Techniques
Survey feedback - a widely
used method of intervention
whereby employee attitudes
are solicited by
questionnaire
Anonymous
Group reporting format

No repercussions
Clear purpose
Follow-up
 OD Intervention Methods:
Organizational/Group Techniques
Management by Objective an
organization-wide
intervention technique of
joint goal setting between
employees and managers
Initial objectives
Periodic progress reviews
Problem solving to
remove obstacles to
goal achievement
 OD Intervention Methods:
Organizational/Group Techniques
Quality Program - a program
that embeds product and
service quality excellence
into the organizational
culture
Raise aspirations about
product/service quality
Embed product/service
quality excellence in the
organizational culture
 OD Intervention Methods:
Organizational/Group Techniques
Team Building - an
intervention designed to
improve the effectiveness of
a work group
Seek feedback
Discuss errors
Reflect on successes & failures
Experiment with new ways of
performing
Climate of psychological safety
 OD Intervention Methods:
Organizational/Group Techniques
Large Group Interventions -
events that bring all of the
key members of a group
together in one room for an
extended period of time

Outside consultants determine

participants & goals
Participants=critical mass
supporting change
 OD Intervention Methods:
Organizational/Group Techniques
Process Consultation - an OD
method that helps managers
and employers improve the
processes that are used in Outside consultant:
organizations Enters organization
Defines the relationship
Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
 OD Intervention Methods:
Individual-Focused Techniques
Skills Training - increasing
the job knowledge,
skills, and abilities that
are necessary to do a job
effectively
In formal classroom settings
On the job (Continual updating)
 OD Intervention Methods:
Individual-Focused Techniques
Sensitivity Training – an
intervention designed to
help individuals under-
stand how their behavior
affects others Outside trainer who
intervenes only to move
the group forward.
Training can:
• help employees
understand each other
•recognize their own feelings
•improve communication
 OD Intervention Methods:
Individual-Focused Techniques
Management Development
Training - a host of
techniques for enhancing
managers’ skills in an
organization
Verbal information
Intellectual skills
Attitudes
Development
 OD Intervention Methods:
Individual-Focused Techniques
Role Negotiation - a
technique whereby
individuals meet and
clarify their psychological
contract
Outcomes
• Better understanding of
what each can be
expected to give & receive
• Less ambiguity
 OD Intervention Methods:
Individual-Focused Techniques
Job Redesign - an OD
intervention method that
alters jobs to improve the
fit between individual
skills and the demands of
the job
Realign task demands and
individual capabilities
Redesign jobs to fit new
techniques or organization
structures
 OD Intervention Methods:
Individual-Focused Techniques

Ex. Stress reduction education,

Health Promotion employee assistance
Programs

Career Planning Match individual’s career

aspirations with organizational
opportunities
 Ethical Considerations in
Organizational Development

 Selection of the OD method

 Voluntary participation
 Confidentiality
 Potential for manipulation by the change agent