An Experiential Approach to Organization Development 7 th edition Chapter 6 Slide 1 Chapter 6 Overcoming Resistance to Change

An Experiential Approach to Organization Development 7 th edition Chapter 6Slide 1

Chapter 6Chapter 6

Overcoming Resistance

to Change

An Experiential Approach to Organization Development 7 th edition

Chapter 6Slide 2

Learning Objectives (part 1 of 2)

Identify forces within individuals and

organizations that cause resistance to

change.

Recognize strategies that can increase

motivation to change.


Chapter 6Slide 3

Learning Objectives (part 2 of 2)

Diagnose forces driving and resisting

organization change.

Experience reactions to a change situation.


Chapter 6Slide 4

Toys Are Mattel (part 1 of 2)

The toy industry is going through radical

change.

Mattel has history of nearly falling apart every

decade since the 1970s.


Chapter 6Slide 5

Toys Are Mattel (part 2 of 2)

CEO Eckert moving Mattel to redefine core

business.

• Better control inventory

• Streamline manufacturing

• Develop more toys in-house.

Expand overseas as toys mature in the U.S.


Chapter 6Slide 6

Change and Reinvent (part 1 of 2)

Many organizations being forced to radically

change.

Organizations face major challenge in

managing change.


Chapter 6Slide 7

Change and Reinvent (part 2 of 2)

Organizations need capacity to adapt quickly.

People are focus of most serious challenges.

Large scale changes often incur significant

problems and challenges.


Chapter 6Slide 8

Changes on Personal Level

Set patterns of behavior.

Defined relationships with others.

Work procedures, and job skills.


Chapter 6Slide 9

Changes on Organizational Level

Policies.

Procedures.

Organization structures.

Manufacturing processes.

Work flows.


Chapter 6Slide 10

Life Cycle of Resistance to Change (part 1 of 5)

The response to change tends to move through

a life cycle of 5 phases:

Phase 1.

Only few people who see need for

change.

Resistance appears massive.


Chapter 6Slide 11


Phase 2.

Forces for and against change become

identifiable.

Change more thoroughly understood.

Novelty of change tends to disappear.


Chapter 6Slide 12


Phase 3.

Direct conflict and showdown between

forces.

This phase probably means life or death

to change.


Chapter 6Slide 13


Phase 4.

Remaining resistance seen as stubborn.

Possibility that resisters will mobilize

support to shift balance of power.


Chapter 6Slide 14


Phase 5.

Resisters to change are as few and as

alienated as were advocates in first

phase.


Chapter 6Slide 15

Major Factors AffectingSuccess of Change

Advocates of

change

Degree of change

Time frame

Impact on culture

Evaluation of

change.


Chapter 6Slide 16

Figure 6.1Change Factors


Chapter 6Slide 17

Advocates of Change

Person leading change program is often most

important force for change.

Internal or external OD practitioners may be

brought in to assist.


Chapter 6Slide 18

Degree of Change

Is change minor or major?

The greater the degree of change, the more

difficult it is to implement.


Chapter 6Slide 19

Time Frame

Greater chance of success if change is gradual

and in longer time frame.

Some organizations only chance for survival

depends on radical change introduced swiftly.


Chapter 6Slide 20

Impact on Culture

The greater the impact on existing culture,

the greater the resistance and difficulty to

implement change.


Chapter 6Slide 21

Evaluation on Culture

Standards of performance developed to

measure change and impact on

organization.


Chapter 6Slide 22

A Change Model (part 1 of 5)

Two major considerations in organizational

change are:

Degree of change.

Impact on organization’s culture.


Chapter 6Slide 23

Figure 6.2Change Model


Chapter 6Slide 24


Quadrant 1

Minor change, minor impact on culture.

Resistance will be at lowest level and success

will be most probable.


Chapter 6Slide 25


Quadrant 2

Minor change, major impact on culture.

Some resistance can be expected.


Chapter 6Slide 26


Quadrant 3

Major change, minor impact on culture.

Some resistance is likely.

Good management can probably overcome it.


Chapter 6Slide 27


Quadrant 4

Major change, major impact on culture.

The greatest resistance can be predicted.

The probability of success is low.


Chapter 6Slide 28

Driving Forces Toward Acceptance of Change

Driving forces are anything that increases

organization to implement proposed change.

Driving forces include:

• Dissatisfaction with present situation.

• External pressures toward change.


Chapter 6Slide 29

Momentum Toward Change

Once change underway, certain forces tend to

push change along.

Those involved probably become committed.

When money is committed to start a change,

organization likely will want to continue.

Change in one part of organization may set off

chain reaction in other parts.


Chapter 6Slide 30

Motivation by Management

Manager or advocate of change becomes

motivating force.

Top management’s encouragement can

motivate change.


Chapter 6Slide 31

Our Changing World:Globalization of World’s

Business?(part 1 of 3)

Globalization has occurred for hundreds of

years but recently experienced exponential

growth.


Chapter 6Slide 32

Our Changing World (part 2 of 3)

Reasons for Increase Include:

• Improvements in communications and

transportation.

• More efficient global banking systems.

• Surpluses in capital in US, Japan, Europe.

• Worldwide lowering of trade barriers.


Chapter 6Slide 33

Our Changing World (part 3 of 3)

Statistics of globalization include:

• By 2000 number of MNCs above 63,000.

• 1,000 largest MNCs account for 80% of world’s

industrial production.

• MNCs are based all over world:

US 37%. Japan 21%. Europe 25%.

Also based in developing countries.


Chapter 6Slide 34

Restraining Forces Blocking Implementation of Change

(part 1 of 2)

Uncertainty regarding change.

Fear of unknown.

Disruption of routine.

Loss of benefits.


Chapter 6Slide 35

Restraining Forces Blocking Implementation of Change

(part 2 of 2)

Threat to security.

Threat to position power.

Redistribution of power.

Disturb existing social networks.

Conformity to norms and culture.


Chapter 6Slide 36

Driving Forces and Restraining Forces Act in Tandem

Effective change programs increase driving

forces and decrease restraining forces.

Force-field analysis model (see Ch 5) is useful

way to view driving and restraining forces.


Chapter 6Slide 37

Strategies to Lessen Resistance(part 1 of 2)

Education and communication.

Create a vision.

Participation and involvement of members.

Facilitation and support.

Negotiation and agreement.


Chapter 6Slide 38

Strategies to Lessen Resistance(part 2 of 2)

Leadership.

Reward systems.

Explicit and implicit coercion.

Climate conducive to communications.

Power strategies.


Chapter 6Slide 39

OD In Practice: How Dupont Shortened Its Stove-pipes (part 1 of 3)

Industrial Polymers Division (IPD) shows how

DuPont can change.

Products “out-dated.”

Problems included low morale and low

productivity.

Top and middle management understood need

to improve.


Chapter 6Slide 40

OD in Practice (part 2 of 3)

Only major change would improve division.

Forces for change included:

People aware of average performance.

They had desire to turn things around.

Widely held belief that survival of division and

personnel hung in balance.


Chapter 6Slide 41

OD in Practice (part 3 of 3)

Vision statement was developed by employees.

Plans made to implement team efforts and self-

management.

No customary “stove-pipe” hierarchy of

supervisors and no formal departments.


Chapter 6Slide 42

Keywords and Concepts

Driving forces - increases client system to

implement proposed change.

Employee stock ownership plan (ESOP) -

grant stock or stock options to broad section

of employees.


Chapter 6Slide 43

Gain sharing - reward system that recognizes

value of specific group.

Knowledge-based pay - reward system based

on the knowledge or skills a worker has.

Open-book management - employees see

company’s financial records to analyze

problems for themselves.


Chapter 6Slide 44

Power strategies - technique for lessening

resistance to change that uses power

structure in an organization.

Profit-sharing - uses the performance of

business to calculate employee pay.

Restraining forces - forces that block

implementation of a change program.


Chapter 6Slide 45

Preparations for Next Chapter(part 1 of 2)

Read Chapter 7.

Complete Step 1 of OD Skills Simulation 7.1,

form teams of six, and assign roles.

Complete Steps 1 and 2 of OD Skills

Simulation 7.2.


Chapter 6Slide 46

Preparations for Next Chapter(part 2 of 2)

Read and prepare for Step 1 of OD Skills

Simulation 7.3.

Read and analyze Case: The OD Letters.

Documents

An Experiential Approach to Organization Development 7 th edition Chapter 6 Slide 1 Chapter 6 Overcoming Resistance to Change