1. 1 Knowledge Objectives 1.Explain how organizations and individuals respond to change 2.Explain how management can reduce resistance to change. 3.Describe why unfreezing-change- refreezing is important for OD 4.Identify and describe conflict resolution techniques, and elements of effective negotiation

2. 2 Change: Organizational Perspectives Types of Organizational Change –Anticipatory changes: planned changes based on expected situations. –Reactive changes: changes made in response to unexpected situations. –Incremental changes: subsystem adjustments required to keep the organization on course. –Strategic changes: altering the overall shape or direction of the organization.

3. 3 Change: Organizational Perspectives (cont’d) Tuning –The most common, least intense, and least risky type of change - basic routines are unchanged. –Also known as preventive maintenance and kaizen (continuous improvement). –Key is to actively anticipate and avoid problems rather than waiting for something to go wrong. Adaptation –Incremental changes that are in reaction to external problems, events, or pressures.

4. 4 Change: Organizational Perspectives (cont’d) Reorientation –Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected. –Also called “frame bending” (Nadler and Tushman). Re-Creation –Intense and risky decisive change that reinvents the organization. –Also called “frame breaking” (Nadler and Tushman).

5. 5 Individual Reactions to Change How People Respond to Changes They Like –Three-stage process Unrealistic optimism Reality shock Constructive direction

6. 6 Individual Reactions to Change (cont’d) How People Respond to Changes They Fear and Dislike –Stages Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction

7. 7 Why Do Employees Resist Change? Surprise –Unannounced significant changes threaten employees’ sense of balance in the workplace. Inertia –Employees have a desire to maintain a safe, secure, and predictable status quo. Misunderstanding and lack of skills –Without introductory or remedial training, change may be perceived negatively.

8. 8 Why Do Employees Resist Change? (cont’d) Emotional Side Effects –Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change. Lack of Trust –Promises of improvement mean nothing if employees do not trust management. Fear of Failure –Employees are intimidated by change and doubt their abilities to meet new challenges.

9. 9 Personality Conflicts –Managers who are disliked by their managers are poor conduits for change. Poor Timing –Other events can conspire to create resentment about a particular change. Lack of Tact –No showing sensitivity to feelings can create resistance to change. Why Do Employees Resist Change? (cont’d)

10. 10 Threat to Job Status/Security –Employees worry that any change may threaten their job or security. Breakup of Work Group –Changes can tear apart established on-the-job social relationships. Competing Commitments –Change can disrupt employees in their pursuit of other goals. Why Do Employees Resist Change? (cont’d)

11. 11 Overcoming Resistance to Change Strategies for Overcoming Resistance to Change –Education and communication –Participation and involvement –Facilitation and support –Negotiation and agreement –Manipulation and co-optation –Explicit and implicit coercion

12. 12 Making Change Happen Two Approaches to Organization Change –Organization Development (OD) Formal top-down approach –Grassroots Change An unofficial and informal bottom-up approach

13. 13 Planned Change Through Organization Development (OD) Organization development (OD) –Planned change programs intended to help people and organizations function more effectively. –Applying behavioral science principles, methods, and theories to create and cope with change.

14. 14 Planned Change Through Organization Development (OD) (cont’d) Objectives of OD –Deepen sense of organizational purpose. –Strengthen interpersonal trust. –Encourage problem solving rather than avoidance. –Develop a satisfying work experience. –Supplement formal authority with knowledge and skill-based authority. –Increase personal responsibility for planning and implementing. –Encourage willingness to change.

15. 15 The OD Process –Unfreezing, change, refreezing (Kurt Lewin) Unfreezing: neutralizing resistance by preparing people for change. Refreezing: systematically following a change program for lasting results. Planned Change Through Organization Development (OD) (cont’d)

16. 16 Unofficial and Informal Grassroots Change Tempered Radicals –People who quietly try to change the dominant organizational culture in line with their convictions. –Guidelines for tempered radicals Think small for big results. Be authentic. Translate. Don’t go it alone.

17. 17 Managing Conflict Dealing with the Two Faces of Conflict –Competitive conflict: parties are pursuing directly opposite (win-lose) goals. –Cooperative conflict: a mutually reinforcing experience (win-win) that serves the best interests of both parties. Conflict Triggers –Conflict trigger: any factor that increases the chances of conflict.

18. 18 Managing Conflict (cont’d) Types of Conflict Triggers (cont’d) –Ambiguous or overlapping jurisdictions. –Competition for scarce resources. –Communication breakdowns. –Time pressure. –Unreasonable standards, rule, policies, or procedures. –Personality clashes. –Status differentials. –Unrealized expectations.

19. 19 Managing Conflict (cont’d) Resolving Conflict: Conflict Resolution Techniques –Problem solving –Superordinate goals –Compromise –Forcing –Smoothing

20. 20 Organizational Politics What Does Organizational Politics Involve? –The pursuit of self-interest at work in the face of real or imagined opposition. Effects of Organizational Politics –Hinders organizational and individual effectiveness. –Is an irritant to employees. –Can have significant ethical implications.

21. 21 Organizational Politics (cont’d) Research on Organizational Politics –The perception that the higher the level of management, the greater amount of politics. –The larger the organization, the greater the politics. –Staff personnel are more political than line managers. –Marketing people are the most political; production people were considered the least political. –61% of employees believed organizational politics helps advance one’s career. –45% of employees believed that organizational politics detracts from organizational goals.

22. 22 Organizational Politics (cont’d) Political Tactics –Posturing: “One upmanship” and taking credit for others work. –Empire building: gaining control over human and material resources. –Making the supervisor look good: engaging in “apple polishing.” –Collecting and using social IOUs: exchanging reciprocal political favors by making someone look good or covering up their mistakes.

23. 23 Organizational Politics (cont’d) Political Tactics –Creating power and loyalty cliques: facing superiors as a cohesive group rather than alone. –Engaging in destructive competition: sabotaging the work of others through character assassination.

24. 24 Organizational Politics (cont’d) Antidotes to Political Behavior –Strive for a climate of openness and trust. –Measure performance results rather than personalities. –Encourage top management to refrain from political behaviors. –Strive to integrate individual and organizational goals through meaningful work and career planning. –Practice job rotation to encourage broader perspectives and understanding of the problems of others.

25. 25 Negotiating Negotiation –A decision-making process among interdependent parties with different preferences. Common Types of Negotiation –Two-party negotiation (e.g., buyer and seller) –Third party negotiation (e.g., agents and arbitrators)

26. 26 Negotiating (cont’d) Elements of Negotiation –Adopting a win-win attitude Understanding that mutual beneficial agreement addresses the both parties’ interests. –Knowing your BTNA (best alternative to a negotiated agreement) Your “bottom line” for accepting or rejecting offers. –Identifying the Bargaining Zone Negotiation is useless if both parties involved have no common ground on which to maneuver during bargaining.

27. 27 Negotiating (cont’d) Added Value Negotiating (AVN) –A practical five-step win-win process involving development of multiple deals. Clarify subjective and objective interests; seeking common ground. Identify options and their marketplace values. Design alternative deal packages that foster a creative agreement. Select a mutually acceptable deal that is most feasible for both parties. Perfect the deal by hammering out unresolved details.