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© 2011 Cengage Learning. All rights reserved. Chapter 18 Managing Change 1.Identify the major external and internal forces for change in organizations.

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Presentation on theme: "© 2011 Cengage Learning. All rights reserved. Chapter 18 Managing Change 1.Identify the major external and internal forces for change in organizations."— Presentation transcript:

1 © 2011 Cengage Learning. All rights reserved. Chapter 18 Managing Change 1.Identify the major external and internal forces for change in organizations. 2.Describe how different types of change vary in scope. 3.Discuss methods organizations can use to manage resistance to change. 4.Explain Lewin’s organizational change model. 5.Explain how companies determine the need to conduct an organizational development intervention. 6.Discuss the major group-focused techniques for organization development intervention. 7.Discuss the major individual-focused techniques for organization development intervention. Learning Outcomes

2 © 2011 Cengage Learning. All rights reserved. Identify the major external and internal forces for change in organizations. 1 Learning Outcome

3 © 2011 Cengage Learning. All rights reserved. Organizational Changes Planned Change – change resulting from a deliberate decision to alter the organization Unplanned Change – change that is imposed on the organization and is often unforeseen

4 External Forces for Change Globalization Workforce Diversity Changing Technology Ethical Behavior © 2011 Cengage Learning. All rights reserved.

5 Globalization and © 2011 Cengage Learning. All rights reserved. Organizations must rethink the most efficient ways to: Use resources Disseminate/gather information Develop people Globalization requires changes in structure and employee mindsets

6 © 2011 Cengage Learning. All rights reserved. Workforce Diversity Workforce will see: Increased gender diversity Increased cultural diversity Increased age diversity

7 © 2011 Cengage Learning. All rights reserved. Technological Change Organizations that fail to keep pace can quickly fall behind. Innovation promotes associated changes in work relationships and organizational structures.

8 © 2011 Cengage Learning. All rights reserved. Managing Ethical Behavior Organizations must create a culture that encourages ethical behavior. Society expects organizations to maintain ethical behavior internally and externally.

9 Internal Forces for Change Declining Effectiveness Changes in expectations Crisis Changes in work climate © 2010 Cengage Learning. All rights reserved.

10 © 2011 Cengage Learning. All rights reserved. Describe how different types of change vary in scope. 2 Learning Outcome

11 © 2011 Cengage Learning. All rights reserved. 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

12 © 2011 Cengage Learning. All rights reserved. The Change Agent Individual or group that undertakes the task of introducing and managing a change in an organization. Internal or external

13 © 2011 Cengage Learning. All rights reserved. Internal Change Agents Advantages know past history, political system, and culture must live with results of change so will move carefully Disadvantages may be associated with factions, accused of favoritism may be too close to the situation to be objective

14 © 2011 Cengage Learning. All rights reserved. External Change Agents To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with Advantages outsider’s objective view impartiality Disadvantages limited knowledge of organization’s history may be viewed with suspicion

15 © 2011 Cengage Learning. All rights reserved. Discuss methods organizations can use to manage resistance to change. 3 Learning Outcome

16 © 2011 Cengage Learning. All rights reserved. Resistance to Change Fear of the unknown Fear of loss Fear of failure Disruption of interpersonal relationships Personality conflicts Politics Cultural assumptions and values

17 © 2011 Cengage Learning. All rights reserved. Dealing with Resistance to Change Communication –details –rationale Participation in the process –ownership –commitment Empathy and support

18 © 2011 Cengage Learning. All rights reserved. Explain Lewin’s organizational change model. 4 Learning Outcome

19 © 2011 Cengage Learning. All rights reserved. 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

20 Force Field Analysis of Decision to Engage in Exercise Forces for change Weight gain Minimally passing treadmill test Feel lethargic; have no energy Family history of cardiovascular disease New, physically demanding job Forces for status quo Lack of time No exercise facility at work Spouse/partner hates to exercise No interest in physical activity or sports Made a grade of D in physical education class Equilibrium © 2010 Cengage Learning. All rights reserved.

21 © 2011 Cengage Learning. All rights reserved. Applying Lewin’s Model Unfreezing: the organization eliminates rewards for current behavior Moving: the organization initiates new options and explains their rationale Refreezing: organizational culture and formal reward systems encourage the new behaviors UnfreezingMoving Refreezing Reducing forces For status quo Developing new attitudes, values, and behaviors Reinforcing new attitudes, values, and behaviors

22 © 2011 Cengage Learning. All rights reserved. Beyond the Book: Testing Your Tolerance for Ambiguity Read each of the following statements carefully. Then rate each of them in terms of the extent to which you either agree or disagree with the statement using the following scale: Completely Disagree Completely Agree Neither Agree nor Disagree 1. An expert who doesn’t come up with a definite answer probably doesn’t know much. 2. I would like to live in a foreign country for a while. 3. The sooner we all acquire similar values and ideals, the better. 4. A good teacher is one who makes you wonder about your way of looking at things. 5. I like parties where I know most of the people more than ones where all or most of the people are complete strangers.

23 © 2011 Cengage Learning. All rights reserved. Beyond the Book: Testing Your Tolerance for Ambiguity 6. Teachers or supervisors who hand out vague assignments give a chance for one to show initiative and originality. 7. A person who leads an even, regular life in which few surprises or unexpected happenings arise really has a lot to be grateful for. 8. Many of our most important decisions are based upon insufficient information. 9. There is really no such thing as a problem that can’t be solved. 10. People who fit their lives to a schedule probably miss most of the joy of living. 11. A good job is one where what is to be done and how it is to be done are always clear. 12. It is more fun to tackle a complicated problem than to solve a simple one. 13. In the long run, it is possible to get more done by tackling small, simple problems rather than large and complicated ones. 14. Often the most interesting and stimulating people are those who don’t mind being different and original. 15. What we are used to is always preferable to what is unfamiliar.

24 © 2011 Cengage Learning. All rights reserved. Beyond the Book: Testing Your Tolerance for Ambiguity Scoring: For even-numbered questions, add the total points. For odd-numbered questions, use reverse scoring and add the total points. (1 becomes 7, 2 becomes 6, etc.) Interpreting Your Results: A score of 15 would indicate perfect ambiguity tolerance, while perfect intolerance would yield a score of 105. Typical scores between 20 and 80 are reported, with means of 45. Tested private-sector managers scored 44.6 ± 8.5, while public- and third-sector managers scored 43 ± 20.

25 © 2011 Cengage Learning. All rights reserved. Explain how companies determine the need to conduct an organizational development intervention. 5 Learning Outcome

26 © 2011 Cengage Learning. All rights reserved. Organizational Development (OD) a systematic approach to organizational improvement that applies to organizational improvement in order to increase individual and organizational well-being and effectiveness

27 © 2011 Cengage Learning. All rights reserved. Diagnosis and Needs Analysis Questions to 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? Diagnosis and needs analysis Intervention Follow-up

28 © 2011 Cengage Learning. All rights reserved. Discuss the major group-focused techniques for organization development intervention. 6 Learning Outcome

29 © 2011 Cengage Learning. All rights reserved. Group-Focused Techniques Survey feedback Management by objectives (MBO) Product and service quality programs Team building Process consultation 5

30 © 2011 Cengage Learning. All rights reserved. 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

31 © 2011 Cengage Learning. All rights reserved. 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 Management by Objectives

32 © 2011 Cengage Learning. All rights reserved. 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 Quality Program

33 © 2011 Cengage Learning. All rights reserved. An intervention designed to improve the effectiveness of a work group Seek feedback Discuss errors Reflect on successes and failures Experiment with new ways of performing Climate of psychological safety Team Building

34 © 2011 Cengage Learning. All rights reserved. An OD method that helps managers and employers improve the processes that are used in organizations Outside consultant: Enters organization Defines the relationship Chooses an approach Gathers data Diagnoses problem Intervenes Leaves organization Process Consultation

35 © 2011 Cengage Learning. All rights reserved. Discuss the major individual- focused techniques for organization development intervention. 7 Learning Outcome

36 © 2011 Cengage Learning. All rights reserved. Individual-Focused Techniques Skills training Leadership training & development Executive coaching Role negotiation Job redesign Health promotion programs Career planning

37 © 2011 Cengage Learning. All rights reserved. Skills Training increasing the job knowledge, skills, and abilities that are necessary to do a job effectively

38 © 2011 Cengage Learning. All rights reserved. A variety of techniques that are designed to enhance individual’s leadership skills Action learning Simulation Business games Role-playing Case studies Leadership Training & Development

39 © 2011 Cengage Learning. All rights reserved. A host of techniques for enhancing managers’ skills in an organization Verbal information Intellectual skills Attitudes Development Executive Coaching

40 © 2011 Cengage Learning. All rights reserved. A technique whereby individuals meet and clarify their psychological contract Better understanding of what each can be expected to give and receive Less ambiguity Role Negotiation

41 © 2011 Cengage Learning. All rights reserved. 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 Job Redesign

42 © 2011 Cengage Learning. All rights reserved. Health Promotion Programs Ex. Stress reduction education, employee assistance Match individual’s career aspirations with organizational opportunities Health and Career Career Planning

43 © 2011 Cengage Learning. All rights reserved. Beyond the Book: When The Perks Are Gone Because of the global recession, many organizations are removing organizational perks and benefits in order to save money. No more free lunches, no co-pay health insurance, subsidized child care, etc. In light of these changes, what can be done to make sure employees stay content and motivated? Remember that perks are not essential to the job; i.e., lose the sense of entitlement Be fair in cutbacks. Continue gathering with co-workers, even at your own expense. You are part of the solution – ask yourself “What does my work offer that I can be happy about?”

44 © 2011 Cengage Learning. All rights reserved. Field of Dreams 1.Who is the target of change in this scene? 2. What are the forces for change? Are the forces for change internal or external to the change target? 3. Does the scene show the role of leadership in organizational change? If it does, who is the leader?


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