1. © Prentice Hall, 2002 13 - 1 Modern Management 9 th edition.

2. © Prentice Hall, 2002 13 - 2  Objectives A working definition of changing an organization An understanding of the relative importance of change and stability to an organization Some ability to recognize what kind of changes should be made within an organization An appreciation for why the people affected by a change should be considered when the change is being made Some facility at evaluating change An understanding of how organizational change and stress are related Knowledge about virtuality as a vehicle for organizational change.

3. © Prentice Hall, 2002 13 - 3 F UNDAMENTALS O F C HANGING A N O RGANIZATION Defining Changing an Organization The Importance of Change General Motors' “think list”: 1.Can a machine be used to do a better or faster job? 2.Can the fixture now in use be improved? 3.Can handling of materials for the machine be improved? 4.Can a special tool be used to combine the operations? 5.Can the quality of the part being produced be improved by changing the sequence of the operation? 6.Can the material used be cut or trimmed differently for greater economy or efficiency? 7.Can the operation be made safer? 8.Can paperwork regarding this job be eliminated? 9.Can established procedures be simplified? Change Versus Stability.

4. © Prentice Hall, 2002 13 - 4 F UNDAMENTALS O F C HANGING A N O RGANIZATION Figure 13.1 Adaptation, stability, and organizational survival.

5. © Prentice Hall, 2002 13 - 5 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Figure 13.2 The collective influence of five major factors on the success of changing an organization.

6. © Prentice Hall, 2002 13 - 6 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION The Change Agent Determining What Should Be Changed Organizational effectiveness depends on: 1. People - attitudes, leadership skills, communication skills 2. Structure - organizational controls, such as policies and procedures 3. Technology - equipment or processes that assist in job performance.

7. © Prentice Hall, 2002 13 - 7 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Figure 13.3 Determination of organizational effectiveness by the relationship of people, technological, and structural factors.

8. © Prentice Hall, 2002 13 - 8 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION The Kind of Change to Make Structural Change Describing Structural Change 1.Clarifying and defining jobs 2.Modifying organizational structure to fit communication needs 3.Decentralizing organization to reduce cost of coordination Increase controllability of subunits Increase motivation Gain greater flexibility Matrix Organizations Making the Change to Matrix: An Example.

9. © Prentice Hall, 2002 13 - 9 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Figure 13.4 Portion of a traditional organizational structure based primarily on product line.

10. © Prentice Hall, 2002 13 - 10 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Figure 13.5 Traditional organization chart transformed into matrix organization chart.

11. © Prentice Hall, 2002 13 - 11 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION The Kind of Change to Make (con’t) People Change Describing People Change:Organization Development (OD) Grid OD The Ideal Style Main Training Phases.

12. © Prentice Hall, 2002 13 - 12 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Figure 13.6 The managerial grid.

13. © Prentice Hall, 2002 13 - 13 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION The Kind of Change to Make (con’t) People Change (con’t) The Status of Organization Development Weaknesses in OD efforts: 1. Effectiveness difficult to evaluate 2. Generally too time-consuming 3. Objectives commonly too vague 4. Total costs difficult to gauge at time program starts 5. OD programs are generally too expensive Improve the quality of OD efforts by: 1. Systematically tailor to meet the specific needs of organization 2. Continually demonstrate how people should change their behavior 3. Conscientiously change reward systems.

14. © Prentice Hall, 2002 13 - 14 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Individuals Affected by the Change Resistance to Change Reducing Resistance to Change 1. Avoid surprises 2. Promote real understanding Will I lose my job? Will my old skills become obsolete? Am I capable of producing effectively under the new system? Will my power and prestige decline? Will I be given more responsibility than I care to assume? Will I have to work longer hours? Will it force me to betray or desert my good friends? 3. Set the stage for change 4. Make tentative change Test reactions to new situation before committing to it Acquire more facts to base attitudes and behavior toward change Review and modify some of the preconceptions Less likely to regard the change as a threat Management evaluates and modifies before carrying out.

15. © Prentice Hall, 2002 13 - 15 F ACTORS T O C ONSIDER W HEN C HANGING A N O RGANIZATION Evaluation of the Change Additional change is justified if it: 1.Further improves the means for satisfying someone’s economic wants 2. Increases profitability 3. Promotes human work for human beings 4. Contributes to individual satisfaction and social well-being.

16. © Prentice Hall, 2002 13 - 16 C HANGE A ND S TRESS Defining Stress The Importance of Studying Stress Effects on health, concentration, and decision-making Employee absenteeism and turnover Safety of other workers or even the public Cost to organizations.

17. © Prentice Hall, 2002 13 - 17 C HANGE A ND S TRESS Managing Stress in Organizations Understanding How Stress Influences Worker Performance Identifying Unhealthy Stress in Organizations Observable symptoms of undesirably high stress levels: Constant fatigueTemper outbursts Low energyCompulsive eating MoodinessHigh levels of anxiety Increased aggressionChronic worrying Excessive use of alcohol.

18. © Prentice Hall, 2002 13 - 18 C HANGE A ND S TRESS Figure 13.7 The relationship between worker stress and the level of worker performance.

19. © Prentice Hall, 2002 13 - 19 C HANGE A ND S TRESS Managing Stress in Organizations (con’t) Helping Employees Handle Stress Reducing Stressors in the Organization 1.Create an organizational climate that is supportive of individuals 2.Make jobs interesting 3.Design and operate career counseling programs.

20. © Prentice Hall, 2002 13 - 20 V IRTUALITY Defining a Virtual Organization Degrees of Virtuality The Virtual Office Defining a Virtual Office Occasional Telecommuting Hoteling Tethered in Office Home-Based, Some Mobility Fully Mobile Reasons for Establishing a Virtual Office Challenges to Managing a Virtual Office.

21. © Prentice Hall, 2002 13 - 21 V IRTUALITY Figure 13.8 Continuum of alternative work arrangements.

22. © Prentice Hall, 2002 13 - 22 Chapter Thirteen Questions