1. Organizational Change: Two Metaphors
Calm Waters (Incremental)
White Water Rapids (Radical) 2

2. Forces for Change External: Internal: Customers Financial Problems
Competitors
Technology
Economic
Social
Political
International
Internal:
Financial Problems
Production Inefficiencies
Employee Expectations/ Demands
Management Goals 14

3. Steps in the Organizational Change Process
Assess need for
change
Find source of problem
Decide on the
Identify obstacles
Implement Change
Top-down or
Bottom-up
Evaluate Change
Is it successful?

4. Types of Changes Technology Product/Service Strategy/Structure
People/Culture
(Usually, more than one change at a time) 29

5. Technology Change Generally, technology change is “bottom-up”
Facilitated by “Ambidextrous” approach
looser structure for innovation than for established activities 29

6. Product/Service Change
Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing)
“Bottom-Up after Horizontal-Linkage”
Horizontal Linkage Model:
Specialized departments
Horizontal linkages
Boundary spanning 30

7. Horizontal Linkage Model25

8. New-Venture Teams Separate unit to develop and initiate innovations
Small, Organic
Relatively free from organizational bureaucracy
Most effective when placed high in the organizational structure 22

9. Strategy/Structure Change
Mission, General Goals
Structural Design, Administrative Procedures, Management Systems
Usually “top-down” 31

10. People and Culture Changes
TQM - Total Quality Management
OD - Organizational Development

11. Organizational Development
Use of behavioral science knowledge to promote people/culture changes such as:
Skill Development
Attitude Change
Teamwork 33

12. OD Can Help Managers Address--
Organizational decline
Conflict management
Mergers/Acquisitions 34

13. OD Techniques Individual: Job Training Career Planning
Coaching, Counseling
Group:
Sensitivity Training
Role Playing
Team-building
The following can include large portions and even the Entire Organization:
Survey-feedback
Intergroup activities
Process-consultation 35

14. Why People Resist Change
Personal preference for sameness
Fear of the unknown
Climate of mistrust
Fear of failure
Loss of status and/or job security
Disruption of cultural traditions and/or group relationships

15. Lewin’s Force Field Analysis: Decision to Engage in Exercise
Forces for Change (Driving)
Weight gain
Minimally passing treadmill test
Feel lethargic, having no energy
Family history of cardiovascular disease
New, physically demanding job
Forces for Status Quo (Restraining)
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 a physical education class.
Equilibrium

16. Driving Forces of Change Restraining Forces against Change
FORCE FIELD ANALYSIS
Current High
Cost Level
Driving Forces of Change
Historically good
company-union
relations
Foreign competition
Recent company
losses
Cheaper sources
available outside
Union desire to
save jobs
Company desire for
flexibility in layoff
decisions
Desired Lower
Deteriorating company-
union relations
Stringent work rules
Current benefit costs
Current pay costs
Employee absenteeism
levels
Company reluctance
to eliminate jobs
Restraining Forces against Change 8 8 8

17. Lewin’s 3-Step Change Model
Unfreezing
Motivate Change (strengthen driving and/or weaken restraining forces)
Change
Use Effective Change Method
Refreezing
Solidify the Change
Unfreezing
Communication/Education
Negotiation/Promise of Rewards
Change
Participation/Training/
Coercion
Refreezing
Reinforce with
Resources/Rewards 27

18. Lewin’s Change Model
Unfreezing - Creates the motivation to change - Encourages the replacement of old behaviors and attitudes with those desired by management - Entails devising ways to reduce barriers to change - Creates psychological safety
•Changing - Provides new information, new behavioral models, or new ways of looking at things - Helps employees learn new concepts or points of view - Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change
Refreezing - Helps employees integrate the changed behavior or attitude into their normal way of doing things - Positive reinforcement is used to reinforce the desired change - Coaching and modeling help reinforce the stability of change