Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. CHANGE A FOCUS ON ADAPTABILITY AND RESILIENCY Chapter 7 7–1

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Change  Constant  Conflicting Emotions  Disruptions  Give up the Familiar Introduction 1.What Is Change and How Do You React to It? 7–2

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 1.What Is Change and How Do You React to It?  List a few major changes you have experienced in life (such as moving, divorce in the family, illness, starting college, or starting or ending a relationship). How hard was that change? What were some of the emotions you experienced? Discussion Questions 7–3

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Organizational Change  Organizational change └ Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness 7-4

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Organizational Change 7-5

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.How Do People Change?  Organizations Change Only If People Do  When Nothing Changes Minds Can Function Efficiently Conscious Attention Not Needed  As Changes Occur, we leave our comfort zone Working Memory Is Limited Memory Overload can lead to fatigue  As Practice Continues New Pathways become stronger and more efficient Change: It Is Not Always Easy for People 7–6

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Positive Emotional Attractors  Well-being and Hope  Can Counter Effects of Stress  Negative Emotional Attractors  State of Negative Emotions Linked to the Sympathetic Nervous System Feeling Defensive, Threatened, and Stressed The Psychology and Neuropsychology of Individual Change 2.How Do People Change? 7–7

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.How Do People Change?  Gestalt Cycle of Experience Leading Change in Groups, Organizations, and Communities 7–8

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.How Do People Change?  Conscious and Uninterrupted Movement  Common traps  Skipping Steps  Stuck at a Step The Gestalt Cycle of Experience and Change in Groups, Organizations and Communities 7–9

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. How Do Societal Shifts Lead to Organizational Changes?  Drivers for Change  Technology  Globalization  Social and Political  Environmentalism Four Trends That Will Affect Organizations for Decades to Come 7–10

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. How Do Societal Shifts Lead to Organizational Changes?  Diversity Defined  Good for Business and offers many benefits  Niche Markets  Competitive Advantage  Wider Base of Knowledge  Facilitate Change  Employee Satisfaction  Legal Compliance The Diversity and Inclusion Imperative 7–11

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Gender, Ethnicity, Pay  Some Improvements  More Change Needed The Diversity and Inclusion Imperative  Age Demographics  Shrinking Populations in the North and West  Younger Populations in the South and East 3. How Do Societal Shifts Lead to Organizational Changes? 7–12

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Introduction 4.What Is the Difference between Incremental and Transformational Change? 7–13  Change Can Be…  Anticipated or Unexpected  Forces/Conditions Inside or Outside the Organization  “Top Down”  “Bottom Up”

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Implementing the Change  Top Down Change └ A fast, revolutionary approach to change in which top managers identify what needs to be changed and then move quickly to implement the changes throughout the organization

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Implementing the Change  Bottom-up change └ A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Incremental Change  Easier to Manage  Risks Cannot anticipate everything Hard TO Detect Revolutionary and Evolutionary Change 4.What Is the Difference between Incremental and Transformational Change? 7–16

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Evolutionary and Revolutionary Change  Evolutionary change └ gradual, incremental, and narrowly focused └ constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate changes in the environment 7-17

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Evolutionary and Revolutionary Change  Revolutionary change └ Rapid, dramatic, transformational, and broadly focused └ Involves a bold attempt to quickly find ways to be effective └ Likely to result in a radical shift in ways of doing things, new goals, and a new structure for the organization 7-18

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.Which Models Can Help Us Understand Change?  Applied to Any Level of Human System Lewin’s Force Field Analysis Model of Change 7–19

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.What Practical Models Can Help Us Manage Change in Organizations? Kotter’s Eight Stage Change Model 7–20

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.What Practical Models Can Help Us Manage Change in Organizations? StageDescription 1Ensure that people feel an urgent need for change. 2 Get the right people involved to lead change  This can include people at all levels, but it must include senior leaders. 3 Create a new strategic vision  when preparing for large-scale change, it is important to gather information and to involve key people from throughout the organization. 4 Communicate the vision effectively  Find ways to inspire and excite people + they understand how the new vision supports individuals’ hopes and dreams. 5 Empower a broad group of change agents  Find, train and create a plan for a broad group of people to actively support the change process. Kotter Stages 1 through 5: Preparing for Change 7–21

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.What Practical Models Can Help Us Manage Change in Organizations? StageDescription 6 Successfully pull off short-term victories  Leaders should set their sights on identifying opportunities for small victories that bring confidence that the change process is going in the right direction. 7 Consolidate small victories and go after more and bigger ones  People’s hearts and minds will have shifted, and they will be inspired and motivated to continue and to take on even bigger, more significant change efforts. 8 Solidify the organizational culture  Change some of the “symbols” of the culture (i.e. mission statement), emphasizing and capitalizing on the “good stories”, or embedding the new ways of being and doing into organizational systems and processes. Kotter Stages 6 through 8: Change 7–22

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Can HR Do to Foster Effective Change?  Goals  Improve Competitive Advantage  Improve Problem-Solving  OD process  Examination of the Organization  “Diagnosis”  Strategic Change Management Organization Development Defined 7–23

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Can HR Do to Foster Effective Change?  Action Research  Studying Results in Change  Process Research plan Results continually reevaluated New research  Iterative Loop Action Research and Action Learning 7–24

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Rule 1  Teach the Right Things  Competencies Relate to Emotional Intelligence  Rule 2  How to Teach  Enhance Learning and Retention Leadership Competency Development and Change 7.What Can HR Do to Foster Effective Change? 7–25

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Skills  Enlist Organizational Resources  Affect the Agenda  Use the Current Culture Become a Change Agent 8.What Can We All Do to Support Change? 7–26 How people react to change