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Chapter 10 Leading Change. 10-2 Chapter 10 Leading Change in Organizations.

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Presentation on theme: "Chapter 10 Leading Change. 10-2 Chapter 10 Leading Change in Organizations."— Presentation transcript:

1 Chapter 10 Leading Change

2 10-2 Chapter 10 Leading Change in Organizations

3 10-3 Learning Objectives Understand the different reasons for resisting change Understand the psychological processes involved in making major changes Understand the different ways that leaders can influence the culture of an organization Understand the characteristics of an effective vision

4 10-4 Learning Objectives (Cont.) Understand how to develop an appealing vision for the organization Understand how to implement a major change in an organization Understand the characteristics of a learning organization Understand how leaders can increase learning and innovation in organizations

5 Organizational Change The activities associated with planning, designing, implementing, and internalizing, tools, procedures, routines, processes, or systems that will require people to perform their jobs differently.

6 Types of Organizational Change Changing attitudes Changing work roles Changing technology Changing strategy

7 The Change Process Force-field model:  Unfreezing  Changing  Refreezing Two-forces at work:  Driving forces  Restraining forces

8 Eight-Stage Model 1.Establish sense of urgency 2.Form powerful guiding coalition 3.Develop a compelling vision 4.Communicate the vision widely 5.Empower employees to act on the vision 6.Generate short term-wins 7.Consolidate gains 8.Institutionalize changes in the organizational culture

9 Changing Culture Attention Reaction to crisis Role modeling Allocation of rewards Criteria for selecting and firing members Design of systems and procedures Design of organizational structure Design of facilities Stories Formal statements

10 Reasons for Resistance to Change Lack of trust Belief that change is unnecessary Belief that the change is not feasible Economic threats Relative high cost Fear of personal failure Loss of status and power Threat to values and ideals Resentment of interference

11 Why people resist to change Learning anxiety Uncertainty Lack of confidence that change will be successful Distrust of leadership Fear of being manipulated

12 10-12 Stages in the Change Process Lewin’s Force-Field Model –Unfreezing –Changing –Refreezing Response to Repeated Traumatic Change –Leaves people less resilient and more vulnerable –Leaves people inoculated and better prepared to deal with change

13 10-13 Stages in Reaction to Change Denial – “This isn’t happening.” Anger – Look for someone to blame. Mourning – People stop denying that change is inevitable, acknowledge what has been lost, and mourn it. Adaption – Accept the need to change and go on with one’s life.

14 10-14 Prior Experience and Reaction to Change How a person reacts to change depends on: –The person’s general confidence about coping with change successfully –How much change they have previously experienced Can increase resilience Can increase stress and frustration

15 10-15 Different Types of Organizational Change Attitude-Centered Change Role-Centered Change Changes in Technology Change in Competitive Strategy Economic or Human Factor Changes Generic Change Programs

16 10-16 Systems Models for Organizational Change Problems have multiple causes Actions have multiple outcomes Changes have delayed effects Actions that appear to offer quick relief may make things worse in the long run The best solution may offer no immediate benefits

17 10-17 Influencing Organizational Change Nature of Organizational Change Ways to Influence Culture –Leadership Behavior –Programs, Systems, Structures, and Cultural Forms

18 10-18

19 10-19 Culture and Growth Stages of Organizations Founders have strong influence on the organizational culture More difficult to change culture in mature organizations In mature organizations, the culture influences the leader more than the leader influences the culture

20 10-20 Developing a Vision Desirable Characteristics for a Vision Elements of a Vision –Mission Statement –Value Statement –Slogan –Strategic Objectives –Project Objectives

21 10-21 Procedures for Developing a Vision Involve key stakeholders Identify strategic objectives with wide appeal Identify relevant elements in the old ideology Link the vision to core competencies Evaluate the credibility and refine the vision Continually assess and refine the vision

22 10-22 Implementing Change Responsibility for Implementing Major Change –Support from top management The Pace and Sequencing of Changes –Rapid versus gradual introduction of change –Change interdependent subunits simultaneously –Changes in the organizational structure to make it consistent with the strategy

23 10-23

24 10-24 Innovation and Organizational Learning Internal Creation of New Knowledge –Internal departments –Pilot testing new ideas External Acquisition of New Knowledge –Best practices –Hiring outsiders –External consultants –Joint ventures

25 10-25 Innovation and Organizational Learning (Cont.) Knowledge Diffusion and Application –Information systems –Written or electronic documents –Special purpose conferences –Seminars and workshops Learning Organizations

26 10-26 Guidelines for Increasing Learning and Innovation Encourage appreciation for flexibility and innovation Encourage and facilitate learning by individuals and teams Help people improve their mental model Leverage learning from surprises and failures

27 10-27 Guidelines for Increasing Learning and Innovation (Cont.) Encourage and facilitate sharing of knowledge and ideas Set innovation goals Reward entrepreneurial behavior

28 Guidelines to overcome resistance to change Show support and commitment Communicate the need for change Maintain ongoing communication Empower people and avoid micromanagement Ensure that change efforts are adequately staffed and funded Anticipate and prepare people

29 Guidelines to overcome resistance to change Assemble a coalition of supporters Align structure with strategy Fill key positions with competent supporters Recognize and reward contributions Use teams and task forces when necessary

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