Principles of Management 11e Kreitner Chapter 16 Change, Conflict, and Negotiation Instructor: IFTEKHAR AMIN CHOWDHURY

Organizational & Individual 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 Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.1: Four Types of Organizational Change Source: Copyright © 1990, by The Regents of the University of California. Reprinted from the CALIFORNIA MANAGEMENT REVIEW, Vol. 32, No. 2. By permission of The Regents. All rights reserved. This article is for personal viewing by individuals accessing this site. It is not to be copied, reproduced, or otherwise disseminated without written permission from the California Management Review. By viewing this document, you hereby agree to these terms. For permission or reprints, contact: cmr@haas.berkeley.edu. Instructor: IFTEKHAR AMIN CHOWDHURY

Individual Reactions to Change How People Respond to Changes They Like Three-stage process Unrealistic optimism Reality shock Constructive direction Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.2: How People Tend to Respond to Changes They Like Instructor: IFTEKHAR AMIN CHOWDHURY

Table 15.1: How to Help Individuals Deal with Change: A Contingency Approach Instructor: IFTEKHAR AMIN CHOWDHURY

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/Ignorance/Lack of Skills Without introductory or remedial training, change may be perceived negatively. Instructor: IFTEKHAR AMIN CHOWDHURY

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. Instructor: IFTEKHAR AMIN CHOWDHURY

Why Do Employees Resist Change? (cont’d) Personality Conflicts Managers who are disliked by their employees are poor conduits for change. Poor Timing Other events can conspire to create resentment about a particular change. Lack of Tact Not showing sensitivity to feelings can create resistance to change. Instructor: IFTEKHAR AMIN CHOWDHURY

Why Do Employees Resist Change? (cont’d) Threat to Job Status/Security Employees worry that change threatens their job or security. Breakup of Work Group Changes can tear apart established on-the-job social relationships. Passive-Aggressive Organizational Culture The more things change, the more they stay the same. Competing Commitments Change can disrupt employees in their pursuit of other goals. Instructor: IFTEKHAR AMIN CHOWDHURY

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 Instructor: IFTEKHAR AMIN CHOWDHURY

Table 15.2: Dealing with Resistance to Change Source: From “Choosing Strategies for Change,” by John P. Kotter and Leonard A. Schlesinger, Harvard Business Review (March–April 1979, p. 111). Reprinted by permission of HBS Publishing. Instructor: IFTEKHAR AMIN CHOWDHURY

Making Change Happen Two Approaches to Organizational Change Organization Development (OD) is a planned change programs intended to help people and organizations function more effectively Formal top-down approach Applying behavioral science principles, methods, and theories to create and cope with change Instructor: IFTEKHAR AMIN CHOWDHURY

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. Instructor: IFTEKHAR AMIN CHOWDHURY

The OD Process Unfreezing, Change, Refreezing (Kurt Lewin) Unfreezing: Neutralizing resistance by preparing people for change Change: Introduction of the intervention Refreezing: Systematically following a change program for lasting results Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.4: A General Model of OD Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.5: The 5P Checklist for All Change Agents Instructor: IFTEKHAR AMIN CHOWDHURY

Managing Conflict Conflict Dealing with the Two Faces of Conflict One person’s incompatible behaviors that make another person’s actions less effective Dealing with the Two Faces of Conflict Competitive conflict: Parties pursuing directly opposite (win-lose) goals Cooperative conflict: A mutually reinforcing experience (win-win) that serves the best interests of both parties Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.6: A Competitive Versus Cooperative Conflict Source: Reprinted from LEARNING TO MANAGE CONFLICT: GETTING PEOPLE TO WORK TOGETHER PRODUCTIVELY by Dean Tjosvold. Copyright © 1993 Dean Tjosvold. First published by Lexington Books. All rights reserved. All correspondence should be sent to Lexington Books, 4720 Boston Way, Lanham, MD 20706. Instructor: IFTEKHAR AMIN CHOWDHURY

Managing Conflict (cont’d) Conflict Trigger Any factor that increases the chances of conflict Conflict Triggers Ambiguous or overlapping jurisdictions Competition for scarce resources Communication breakdowns Time pressure Unreasonable standards, rules, policies, or procedures Personality clashes Status differentials Unrealized expectations Instructor: IFTEKHAR AMIN CHOWDHURY

Managing Conflict (cont’d) Resolving Conflict Doing nothing is usually not a viable option. Conflict Resolution Techniques Problem solving Superordinate goals Compromise Forcing Smoothing Instructor: IFTEKHAR AMIN CHOWDHURY

Negotiating Negotiation Common Types of 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) Instructor: IFTEKHAR AMIN CHOWDHURY

Negotiating (cont’d) Elements of Negotiation Adopting a win-win attitude Understanding that a mutually beneficial agreement addresses both parties’ interests Knowing your BATNA (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. Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 15.7: The Bargaining Zone for Negotiators Instructor: IFTEKHAR AMIN CHOWDHURY

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

Terms to Understand Anticipatory changes Refreezing Reactive changes Incremental changes Strategic changes Organization development (OD) Unfreezing Refreezing Tempered radicals Conflict Conflict trigger Negotiation Bargaining zone Added value negotiating Instructor: IFTEKHAR AMIN CHOWDHURY