1. An Experiential Approach to Organization Development 7 th edition Chapter 6 Slide 1 Chapter 6 Overcoming Resistance to Change

2. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 2 Learning Objectives (part 1 of 2)  Identify forces within individuals and organizations that cause resistance to change.  Recognize strategies that can increase motivation to change.

3. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 3 Learning Objectives (part 2 of 2)  Diagnose forces driving and resisting organization change.  Experience reactions to a change situation.

4. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 4 Toys Are Mattel (part 1 of 2) The toy industry is going through radical change. Mattel has history of nearly falling apart every decade since the 1970s.

5. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 5 Toys Are Mattel (part 2 of 2) CEO Eckert moving Mattel to redefine core business. Better control inventory Streamline manufacturing Develop more toys in-house. Expand overseas as toys mature in the U.S.

6. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 6 Change and Reinvent (part 1 of 2) Many organizations being forced to radically change. Organizations face major challenge in managing change.

7. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 7 Change and Reinvent (part 2 of 2) Organizations need capacity to adapt quickly. People are focus of most serious challenges. Large scale changes often incur significant problems and challenges.

8. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 8 Changes on Personal Level Set patterns of behavior. Defined relationships with others. Work procedures, and job skills.

9. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 9 Changes on Organizational Level Policies. Procedures. Organization structures. Manufacturing processes. Work flows.

10. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 10 Life Cycle of Resistance to Change (part 1 of 5) The response to change tends to move through a life cycle of 5 phases:  Phase 1. Only few people who see need for change. Resistance appears massive.

11. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 11 Life Cycle of Resistance to Change (part 2 of 5)  Phase 2. Forces for and against change become identifiable. Change more thoroughly understood. Novelty of change tends to disappear.

12. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 12 Life Cycle of Resistance to Change (part 3 of 5)  Phase 3. Direct conflict and showdown between forces. This phase probably means life or death to change.

13. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 13 Life Cycle of Resistance to Change (part 4 of 5)  Phase 4. Remaining resistance seen as stubborn. Possibility that resisters will mobilize support to shift balance of power.

14. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 14 Life Cycle of Resistance to Change (part 5 of 5)  Phase 5. Resisters to change are as few and as alienated as were advocates in first phase.

15. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 15 Major Factors Affecting Success of Change  Advocates of change  Degree of change  Time frame  Impact on culture  Evaluation of change.

16. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 16 Figure 6.1 Change Factors

17. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 17 Advocates of Change Person leading change program is often most important force for change. Internal or external OD practitioners may be brought in to assist.

18. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 18 Degree of Change Is change minor or major? The greater the degree of change, the more difficult it is to implement.

19. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 19 Time Frame Greater chance of success if change is gradual and in longer time frame. Some organizations only chance for survival depends on radical change introduced swiftly.

20. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 20 Impact on Culture The greater the impact on existing culture, the greater the resistance and difficulty to implement change.

21. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 21 Evaluation on Culture Standards of performance developed to measure change and impact on organization.

22. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 22 A Change Model (part 1 of 5) Two major considerations in organizational change are:  Degree of change.  Impact on organization’s culture.

23. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 23 Figure 6.2 Change Model

24. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 24 A Change Model (part 2 of 5) Quadrant 1 Minor change, minor impact on culture. Resistance will be at lowest level and success will be most probable.

25. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 25 A Change Model (part 3 of 5) Quadrant 2 Minor change, major impact on culture. Some resistance can be expected.

26. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 26 A Change Model (part 4 of 5) Quadrant 3 Major change, minor impact on culture. Some resistance is likely. Good management can probably overcome it.

27. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 27 A Change Model (part 5 of 5) Quadrant 4 Major change, major impact on culture. The greatest resistance can be predicted. The probability of success is low.

28. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 28 Driving Forces Toward Acceptance of Change Driving forces are anything that increases organization to implement proposed change. Driving forces include: Dissatisfaction with present situation. External pressures toward change.

29. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 29 Momentum Toward Change Once change underway, certain forces tend to push change along. Those involved probably become committed. When money is committed to start a change, organization likely will want to continue. Change in one part of organization may set off chain reaction in other parts.

30. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 30 Motivation by Management Manager or advocate of change becomes motivating force. Top management’s encouragement can motivate change.

31. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 31 Our Changing World: Globalization of World’s Business? (part 1 of 3) Globalization has occurred for hundreds of years but recently experienced exponential growth.

32. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 32 Our Changing World (part 2 of 3) Reasons for Increase Include: Improvements in communications and transportation. More efficient global banking systems. Surpluses in capital in US, Japan, Europe. Worldwide lowering of trade barriers.

33. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 33 Our Changing World (part 3 of 3) Statistics of globalization include: By 2000 number of MNCs above 63,000. 1,000 largest MNCs account for 80% of world’s industrial production. MNCs are based all over world: US 37%. Japan 21%. Europe 25%. Also based in developing countries.

34. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 34 Restraining Forces Blocking Implementation of Change (part 1 of 2)  Uncertainty regarding change.  Fear of unknown.  Disruption of routine.  Loss of benefits.

35. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 35 Restraining Forces Blocking Implementation of Change (part 2 of 2)  Threat to security.  Threat to position power.  Redistribution of power.  Disturb existing social networks.  Conformity to norms and culture.

36. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 36 Driving Forces and Restraining Forces Act in Tandem Effective change programs increase driving forces and decrease restraining forces. Force-field analysis model (see Ch 5) is useful way to view driving and restraining forces.

37. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 37 Strategies to Lessen Resistance (part 1 of 2)  Education and communication.  Create a vision.  Participation and involvement of members.  Facilitation and support.  Negotiation and agreement.

38. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 38 Strategies to Lessen Resistance (part 2 of 2)  Leadership.  Reward systems.  Explicit and implicit coercion.  Climate conducive to communications.  Power strategies.

39. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 39 OD In Practice: How Dupont Shortened Its Stove-pipes (part 1 of 3) Industrial Polymers Division (IPD) shows how DuPont can change. Products “out-dated.” Problems included low morale and low productivity. Top and middle management understood need to improve.

40. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 40 OD in Practice (part 2 of 3) Only major change would improve division. Forces for change included:  People aware of average performance.  They had desire to turn things around.  Widely held belief that survival of division and personnel hung in balance.

41. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 41 OD in Practice (part 3 of 3) Vision statement was developed by employees. Plans made to implement team efforts and self- management. No customary “stove-pipe” hierarchy of supervisors and no formal departments.

42. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 42 Keywords and Concepts  Driving forces - increases client system to implement proposed change.  Employee stock ownership plan (ESOP) - grant stock or stock options to broad section of employees.

43. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 43  Gain sharing - reward system that recognizes value of specific group.  Knowledge-based pay - reward system based on the knowledge or skills a worker has.  Open-book management - employees see company’s financial records to analyze problems for themselves.

44. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 44  Power strategies - technique for lessening resistance to change that uses power structure in an organization.  Profit-sharing - uses the performance of business to calculate employee pay.  Restraining forces - forces that block implementation of a change program.

45. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 45 Preparations for Next Chapter (part 1 of 2)  Read Chapter 7.  Complete Step 1 of OD Skills Simulation 7.1, form teams of six, and assign roles.  Complete Steps 1 and 2 of OD Skills Simulation 7.2.

46. An Experiential Approach to Organization Development 7 th editionChapter 6 Slide 46 Preparations for Next Chapter (part 2 of 2)  Read and prepare for Step 1 of OD Skills Simulation 7.3.  Read and analyze Case: The OD Letters.