OB11 Change

8/3/2019 OB11 Change

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ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N SS T E P H E N P. R O B B I N S

E L E V E N T H E D I T I O NE L E V E N T H E D I T I O N

W W W . P R E N H A L L . C O M / R O B B I N SW W W . P R E N H A L L . C O M / R O B B I N S © 2005 Prentice Hall Inc.All rights reserved.

© 2005 Prentice Hall Inc.All rights reserved.

PowerPoint Presentationby Charlie Cook

PowerPoint Presentationby Charlie Cook

Chapter 18

Organizational Changeand Stress Management



After studying this chapter,you should be able to:

1. Describe forces that act as stimulants tochange.

2. Summarize the sources of individual andorganizational resistance to change.

3. Summarize Lewin¶s three-step change model.

4. Explain the values underlying most OD efforts.

5. Contrast process reengineering andcontinuous improvement processes

6. Identify properties of innovative organizations.

7 . List characteristics of a learning organization.

L E A

R N I

N G

O B J

E C T I V E S



Change Management

The process of renewing the organization sdirection, structure and capabilities to servethe ever-changing needs of the market place,customers and employees.



Forces f or Chang e

Forces f or Chang e

F orce Examples

Nature of the workforce More cultural diversityAging populationMany new entrants with inadequate skills

Technology F aster, cheaper, and more mobile computersOn-line music sharingDeciphering of the human genetic code

Economic shocks Rise and fall of dot-com stocks2000±02 stock market collapseRecord low interest rates

Competition Global competitorsMergers and consolidationsGrowth of e-commerce



18±4

Forces f or Chang e

Forces f or Chang e

F orce Examples

Social trends Internet chat roomsRetirement of Baby BoomersRise in discount and ³big box´ retailers

World politics Iraq±U.S. war Opening of markets in ChinaWar on terrorism following 9/11/01



Environmental triggers of change - PETS

Environmental triggers of change - PETS

ORGANIZATION

Government legislationGovernment ideologyInternational lawUniversal rightsWarsLocal regulationsTaxationTrade union activities

es)

Demographic trends (customers & employees)Lifestyle changesSkills availabilityAttitudes to work & employmentGender issuesWillingness & ability to moveConcern for the environment

Business ethics

Information technology / the internetNew production processesComputerization of processesChanges in transport technology

hip

CompetitorsSuppliersCurrency exchange ratesEmployment ratesWage ratesGovernment economic policiesOther countries¶ economic policiesLending policies of F IsChanges from public to private ownership

Political factors

Socio-cultural

factors

Technological

factors

Economic factors



Exampl esExampl es

L& T - Restructuring Hindustan Unilever from Hindustan Lever Ltd. Hutch- Vodafone Pepsi- Environmental issues Satyam Infosys-leadership changes



Conditions that influence organizational changeConditions that influence organizational change

A dramatic crisis

Leadership turnover

Stage of life-cycle

Age of the organization

Size of organization

Strength of current culture



Organizational Life Cycle (RichardDaft)Organizational Life Cycle (RichardDaft)

Entrepreneurialstage:

Ambiguous goals

High creativity

Collectivitystage:

Informalcommunication

Highcommitment

Decline stage:High employee

turnover

Increasedconflict

centralization

F & C stage:F ormalization of

rules

Stable structure

Emphasis on

efficiency

E of S stage:

More complex str

decentralizn

Diversifiedmarkets

F ormation

G r o w

t h

maturityD e cl i n e



Varieties of change Varieties of change

Smooth incremental change (transactional) ± Evolves slowly in a systematic and predictable way. Change

happens at a constant rate. Change in the means and waysby which organizations achieve their goals.

Bu mpy incremental change ± P eriods of relative tranquility punctuated by acceleration in

the pace of change. Change in means by which organizationsachieve their goals. P eriodic reorganizations.

D iscontin u ou s change (frame-breaking change) ± Change marked by rapid shifts in either strategy, structure or

culture, or in all three. Often, implies change in organization¶sgoals themselves.



Varieties of change Varieties of change

Time

R a

t e o

f c

h a n g e

µSmooth¶incremental

Discontinuous

µBumpy¶incremental



M anaging Plann ed Chang eM anaging Plann ed Chang e

Goals of PlannedChange:

Improving the ability of

the organization toadapt to changes in itsenvironment.

Changing the behavior of individuals andgroups in theorganization.

ChangeMaking things different.

Planned Change

Activities that areintentional and goaloriented.

Change Agents

Persons who act ascatalysts and assume theresponsibility for managingchange activities.



Attitudes towards change: A long-term perspective Attitudes towards change: A long-term perspective

Assumptions:± Change involves not only learning something new but

unlearning something that is integrated into anindividual¶s self / social system

± No change unless there is motivation to change

± Most adult changes involve attitudes/values/self concept and can be painful and threatening

± Organizational changes effected through individual

changes in key members

± Change is a multistage cycle and all stages must be planned and negotiated

± Management of change is not necessarily only rational

management but also emotional management of people



Res ist an ce to Chang eRes ist an ce to Chang e

F orms of Resistance to Change O vert and immediate

Voicing co mplain ts, e ngaging in j ob a ct ions

I mplicit and deferred

Loss of e mpl oyee loyal ty an d mot iva tion, incre a sed errors or mist ak es, incre a sed a bse ntee is m



S ources of Individu al R es ist an ce to Chang eS ources of Individu al R es ist an ce to Chang e



S ources of Or ganiza tional R es ist an ce to Chang eS ources of Or ganiza tional R es ist an ce to Chang e



Resistance to changeResistance to change

Sources of resistance Coping mechanismsPerceived peripherality of change Participation in diagnosis

Perception of imposition Participation and involvement

Indifference of top management Active support from the top

Fear of large-scale disturbance Phasing of change

Fear of inadequate resources Provision of resources

Fear of obsolescence Development of skills

Fear of loss of power Role definition and reorientation

Fear of overload Role clarity and definition



Ov erco ming R es ist an ce to Chang eOv erco ming R es ist an ce to Chang e

Tactics for dealing with resistanceto change:

Education and communication

Participation

F acilitation and support

Negotiation

Manipulation and cooptation

Coercion

Tactics for dealing with resistanceto change:

Education and communication

Participation

F acilitation and support

Negotiation

Manipulation and cooptation

Coercion



Lew in¶s Th ree- S te p Chang e M ode lLew in¶s Th ree- S te p Chang e M ode l

UnfreezingChange efforts to overcomethe pressures of bothindividual resistance andgroup conformity.

RefreezingStabilizing a changeintervention by balancingdriving and restraining forces.

Driving F orcesForces that direct behavior

away from the status quo.

Restraining F orcesForces that hinder movement

from the existing equilibrium.



Lew in¶s Th ree- S te p Chang e M ode lLew in¶s Th ree- S te p Chang e M ode l



U nf ree zing the S ta tus QuoU nf ree zing the S ta tus Quo



K otter ¶s Eigh t-S te p Plan f or Impl e me nting Chang eK otter ¶s Eigh t-S te p Plan f or Impl e me nting Chang e

1. Establish a sense of urgency by creating a compelling reasonfor why change is needed.

2. F orm a coalition with enough power to lead the change.3. Create a new vision to direct the change and strategies for

achieving the vision.

4. Communicate the vision throughout the organization.5. Empower others to act on the vision by removing barriers to

change and encouraging risk taking and creative problemsolving.

6. Plan for, create, and reward short-term ³wins´ that move theorganization toward the new vision.

7. Consolidate improvements, reassess changes, and makenecessary adjustments in the new programs.

8. Reinforce the changes by demonstrating the relationshipbetween new behaviors and organizational success.



Managing organizational changeManaging organizational change

Scan the environment :Align with external forces

of change

Scan the organization :Diagnose areas needing change

Use organizationalinertia as levers of

change

Asse

ss/align the capabilitie

sOf change agent s :

C hallenge personalAssumptions

Attitudesstyles



Or ganiza tional D e ve lopm e ntOr ganiza tional D e ve lopm e nt

OD Values:1. Respect for people

2. Trust and support3. Power equalization

4. Confrontation

5. Participation

Organizational Development (OD)

A collection of planned interventions, built onhumanistic-democratic values, that seeks to improveorganizational effectiveness and employee well-being.



Act ion R ese a rch Act ion R ese a rch

Process Steps:1. Diagnosis

2. Analysis

3. F eedback

4. Action

5. Evaluation

Process Steps:1. Diagnosis

2. Analysis

3. F eedback

4. Action

5. Evaluation

Action research benefits:

Problem-focused rather

than solution-centered.Heavy employeeinvolvement reducesresistance to change.

Action Research

A change process based on systematic collection of data and then selection of a change action based onwhat the analyzed data indicate.



Or ganiza tional D e ve lopm e nt Tec hniq uesOr ganiza tional D e ve lopm e nt Tec hniq ues

Sensitivity Training

T raining groups ( T -groups) that seek to change behavior throughunstructured group interaction.

Provides increased awareness of others and self.

I ncreases empathy with others,

improves listening skills, greateropeness, and increased tolerancefor others.



Or ganiza tional D e ve lopm e nt Tec hniq ues (co nt¶d)Or ganiza tional D e ve lopm e nt Tec hniq ues (co nt¶d)

Survey F eedback Approach

T he use of questionnaires to identify discrepanciesamong member perceptions; discussion followsand remedies are suggested.




Process Consultation (PC)

A consultant gives a client insights into what is goingon around the client, within the client, and betweenthe client and other people; identifies processes that need improvement.




Team Building Activities:

Goal and priority setting.

Developing interpersonal relations.Role analysis to each member¶s role andresponsibilities.

Team process analysis.

Team Building Activities:

Goal and priority setting.

Developing interpersonal relations.Role analysis to each member¶s role andresponsibilities.

Team process analysis.

Team Building

H igh interaction among team members toincrease trust and openness.




Intergroup Problem Solving:Intergroup Problem Solving:

Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.

Share and discuss lists.Share and discuss lists.Look for causes of misperceptions.Look for causes of misperceptions.

Work to develop integrative solutions.Work to develop integrative solutions.

Intergroup Development

OD efforts to change the attitudes, stereotypes, andperceptions that groups have of each other.




Appreciative Inquiry (AI):

Discovery: recalling the strengths of the organization.

Dreaming: speculation on the future of theorganization.

Design: finding a common vision.

Destiny: deciding how to fulfill the dream.

Appreciative Inquiry

Seeks to identify the unique qualities and specialstrengths of an organization, which can then be built on to improve performance.



Conte mp or a ry Chang e Issues For Tod a y¶s M anag ersConte mp or a ry Chang e Issues For Tod a y¶s M anag ers

How are changes in technology affecting thework lives of employees?

What can managers do to help their organizations

become more innovative? How do managers create organizations that

continually learn and adapt?

Is managing change culture-bound?



© 2005 Prentice Hall Inc. All rights reserved. 18±32

Cre a ting a L e a r ning O r ganiza tionCre a ting a L e a r ning O r ganiza tion

Characteristics:Characteristics:

1.1. Holds a shared visionHolds a shared vision

2.2. Discards old ways of Discards old ways of thinking.thinking.

3.3. Views organization asViews organization assystem of relationships.system of relationships.

4.4. Communicates openly.Communicates openly.

5.5. Works together toWorks together toachieve shared vision.achieve shared vision.

Learning Organization

An organization that hasdeveloped the continuouscapacity to adapt andchange.

Source: Ba sed on P. M . S e ng e, Th e Fift h Discipline (New Yor k: D oub led a y, 1990 ).

E X H I B I T 18±6E X H I B I T 18±6




Cre a ting a L e a r ning O r ganiza tionCre a ting a L e a r ning O r ganiza tion

Single-Loop Learning

Errors are corrected usingpast routines and present policies.

Double-Loop Learning

Errors are corrected bymodifying the organization s

objectives, policies, andstandard routines.




M a ster ing Chang e : It¶s Culture- Bou ndM a ster ing Chang e : It¶s Culture- Bou nd

Questions for culture-bound organizations:

1. Do people believe change is even possible?

2. How long will it take to bring about change in theorganization?

3. Is resistance to change greater in this organization dueto the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement

change?5. How will idea champions in this organization go about

gathering support for innovation efforts?

Questions for culture-bound organizations:

1. Do people believe change is even possible?

2. How long will it take to bring about change in theorganization?

3. Is resistance to change greater in this organization dueto the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement

change?5. How will idea champions in this organization go about

gathering support for innovation efforts?

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OB11 Change