1. Chapter 18 Managing Change
Identify the major external and internal forces for change in organizations.
Describe how different types of change vary in scope.
Discuss methods organizations can use to manage resistance to change.
Explain Lewin’s organizational change model.
Explain how companies determine the need to conduct an organizational development intervention.
Discuss the major group-focused techniques for organization development intervention.
Discuss the major individual-focused techniques for organization development intervention.
Learning Outcomes
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2. 1
Learning Outcome
Identify the major external and internal forces for change in organizations.
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3. 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
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4. External Forces for Change
Workforce
Diversity
Globalization
Changing
Technology
Ethical
Behavior
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5. Globalization Organizations must rethink the most efficient ways to:
Use resources
Disseminate/gather information
Develop people
Globalization requires changes in
structure and employee mindsets
AND
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6. Workforce Diversity Workforce will see: Increased gender diversity
Increased cultural diversity
Increased age diversity
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7. Technological Change Organizations that fail to keep pace can
quickly fall behind.
Innovation promotes associated changes in work relationships and organizational structures.
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8. Organizations must create a culture that encourages ethical behavior.
Society expects organizations to maintain ethical behavior internally and externally.
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9. Internal Forces for Change
Declining
Effectiveness
Changes in
Expectations
Changes in
Work Climate
Crisis
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10. 2
Learning Outcome
Describe how different types of change vary in scope.
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11. 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
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12. The Change Agent
Individual or group that undertakes the task of introducing and managing a change in an organization.
Internal or external
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13. 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
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14. External Change Agents
Advantages
outsider’s objective view
impartiality
Disadvantages
limited knowledge of organization’s history
may be viewed with suspicion
To succeed, they must be perceived as trustworthy,
be experts with proven track records, be similar to
those they are working with
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15. 3
Learning Outcome
Discuss methods organizations can use to manage resistance to change.
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16. Resistance to Change Fear of the unknown Fear of loss Fear of failure
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values
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17. Dealing with Resistance to Change
Communication
details
rationale
Participation in the process
ownership
commitment
Empathy and support
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18. 4 Learning Outcome Explain Lewin’s organizational change model.
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19. Lewin’s Three-Step Change Model
Unfreezing – involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo
Moving – new attitudes, values, and behaviors are substituted for old ones
Refreezing – new attitudes, values, and behaviors are established as the new status quo
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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
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21. Applying Lewin’s Model
Unfreezing
Moving
Refreezing
Reducing forces
For status quo
Developing new
attitudes, values,
and behaviors
Reinforcing new
attitudes, values,
and behaviors
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
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22. 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
Neither Agree nor Disagree
Completely Agree
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.
SOURCE: “Tolerance for Ambiguity” from D. Marcic, Organizational Behavior: Experiences and Cases (St. Paul, Minn.: West Publishing,
1992), 339–340. Adapted from Paul Nutt. Used with permission.
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23. 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.
SOURCE: “Tolerance for Ambiguity” from D. Marcic, Organizational Behavior: Experiences and Cases (St. Paul, Minn.: West Publishing,
1992), 339–340. Adapted from Paul Nutt. Used with permission.
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24. 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 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.
SOURCE: “Tolerance for Ambiguity” from D. Marcic, Organizational Behavior: Experiences and Cases (St. Paul, Minn.: West Publishing,
1992), 339–340. Adapted from Paul Nutt. Used with permission.
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25. 5
Learning Outcome
Explain how companies determine the need to conduct an organizational development intervention.
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26. Organizational Development (OD)
a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness
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27. Diagnosis and Needs Analysis
Intervention
Follow-up
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?
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28. 6
Learning Outcome
Discuss the major group-focused techniques for organization development intervention.
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29. Group-Focused Techniques5
Group-Focused Techniques
Survey feedback
Management by objectives (MBO)
Product and service quality programs
Team building
Process consultation
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30. 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
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31. Management by Objectives
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
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32. Quality Program
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
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33. Team Building
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
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34. Process Consultation
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
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35. 7
Learning Outcome
Discuss the major individual-focused techniques for organization development intervention.
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36. Individual-Focused Techniques
Skills training
Leadership training & development
Executive coaching
Role negotiation
Job redesign
Health promotion programs
Career planning
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37. Skills Training
increasing the job knowledge, skills, and abilities that are necessary to do a job effectively
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38. Leadership Training & Development
A variety of techniques that are designed to enhance individual’s leadership skills
Action learning
Simulation
Business games
Role-playing
Case studies
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39. Executive Coaching
A host of techniques for enhancing managers’ skills in an organization
Verbal information
Intellectual skills
Attitudes
Development
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40. Role Negotiation
A technique whereby individuals meet and clarify their psychological contract
Better understanding of
what each can be expected to give and receive
Less ambiguity
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41. Job Redesign
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
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42. Health and Career Health Promotion Programs Career Planning
Ex. Stress reduction education, employee assistance
Career Planning
Match individual’s career aspirations with organizational opportunities
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43. 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?”
Facing increasing global competition, and struggling through a worldwide recession, many organizations are eliminating perks that once made them quite attractive. Gone are the catered lunches, computer upgrades and no co-pay health insurance plans. Though psychologists agree that perks are not effective long-term motivators of job performance, seeing such cutbacks can be quite harrowing. As workers see various cuts being made, there is an increasing fear that their job, or the entire company, may soon be gone. And it is this fear that can kill any motivation to do a job well. So, how should organizations and employees handle approach measures of austerity? First, it is important for employees to remember that certain perks, such as free lunch, are not essential to the job. In other words, they need to check their sense of entitlement. Second, organizations need to approach the issue with equality – if benefits are eliminated only for certain employees and not others, it is sure to destroy any sense of motivation and organizational unity. Third, even if you have to spend your own money, continue gathering with others in the office. Staff gatherings allow people to share their feelings and help them realize that, even in hard times, they are working with others. Finally, you are part of the solution – the employee needs to find his or her motivation in things other than an expense account.
SOURCE: K. Schaefer, “Staying Motivated When the Perks Disappear”, The Wall Street Journal. 3 June (accessed 10/27/2009).
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44. 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?
Field of Dreams
Field of Dreams
Ray Kinsella (Kevin Costner) hears a voice while working in his Iowa cornfield that says, “If you build it, he will come.” Ray concludes that “he” is legendary “Shoeless Joe” Jackson (Ray Liotta), a 1919 Chicago White Sox player suspended for rigging the 1919 World Series. With the support of his wife Annie (Amy Madigan), Ray jeopardizes his farm by replacing some corn fields with a modern baseball diamond. “Shoeless Joe” soon arrives, followed by the rest of the suspended players. This charming fantasy film, based on W. P. Kinsellas’s novel Shoeless Joe, shows the rewards of pursuing a dream.
The scene is part of the “People Will Come” sequence toward the end of Field of Dreams. By this time in the story, Ray has met Terrence Mann (James Earl Jones). They have traveled together from Boston to Minnesota to find A. W. “Moonlight” Graham (Burt Lancaster). At this point, the three are at Ray’s Iowa farm.
This scene follows Mark’s (Timothy Busfield) arrival to discuss the foreclosure of Ray and Annie’s mortgage. Mark, who is Annie’s brother, cannot see the players on the field. Ray and Annie’s daughter Karin (Gaby Hoffman) has proposed that people will come to Iowa City and buy tickets to watch a baseball game. Mark does not understand her proposal. The film continues to its end.
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45. Describe the type of change that Holden’s leaders are managing.
What resistance is Holden encountering, especially as the company seeks to design and manufacture highly innovative outerwear garments?
Using Kurt Lewin’s change model, give a force field analysis for Holden’s challenges in delivering innovative products. Suggest how the company might overcome resistance and foster permanent change.
Holden Outerwear
When it comes to trends, Holden has always been a leader, never a follower. Soon after the company launched, it was heralded in the press as the new and improved outerwear. Holden’s snow pants and jackets possess unique features like leather covered snaps, leather shoulders, and urban-style stitching. Unlike brands that make garments using faux materials, Holden works with true cotton denim twill, which is cut for style and then laminated with waterproofing. By far Holden’s greatest innovation has been the creation of a new eco-friendly fabric. In 2005, Mikey LeBlanc and his business partner hatched an idea to make a natural-fiber waterproof breathable fabric, which didn’t exist anywhere in the market. In addition to being technically durable, the designers’ new eco-material was hailed as an environmental breakthrough.
Ask your students:
Describe the type of change that Holden’s leaders are managing.
What resistance is Holden encountering, especially as the company seeks to design and manufacture highly innovative outerwear garments?
Using Kurt Lewin’s change model, give a force field analysis for Holden’s challenges in delivering innovative products. Suggest how the company might overcome resistance and foster permanent change.
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