Organizational Change Objectives: Define ‘organizational change’. Describe common change strategies. Review issues surrounding ‘resistance’ to change. Outline methods for successsful change. Consider ‘stress’ and ‘change’ in organizations. Schermerhorn; Ch. 19 1

Successful ongoing change is essential to organizations Organizational Change Successful ongoing change is essential to organizations Schermerhorn; Ch. 19 2

Types of change Radical Change Incremental Change Unplanned Change Schermerhorn; Ch. 19 3

Change Agent: the people who lead and support the change process Terms: Change Agent: the people who lead and support the change process Innovation: the process of creating new ideas and putting them into practice Schermerhorn; Ch. 19 4

Forces of Change Environment Economic Regulatory Health Factors Legal Personnel Technology Schermerhorn; Ch. 19 5

Purpose Clarify or create mission & objectives Objectives Set or modify specific performance targets Technology Improve equipment facilities, & work flows Strategy Clarify or create strategic & operational plans Change Targets Structure Update organizational design & coordination mechanisms Culture Clarify or create core beliefs and values Tasks Update job designs for individuals & groups People Update recruiting & selection practices; training, development Schermerhorn; Ch. 19 6

Unfreezing = the stage at which a situation is Phases Kurt Lewin Unfreezing = the stage at which a situation is prepared for change Changing = taking action Refreezing = the stage at where changes are reinforced and stabilized Schermerhorn; Ch. 19 7

Schermerhorn; Ch. 19 8

Why do people resist change? Schermerhorn; Ch. 19 9

Why do people resist change? Fear of the unknown Lack of good information Fear for loss of security No reasons to change Fear for loss of power Lack of resources Bad timing Schermerhorn; Ch. 19 10

Criteria for successful changes: Benefit: The change should have a clear relative advantage for the people being asked to change; it should be perceived as ‘a better way’ Compatibility: The change should be as compatible as possible with the existing values and experiences of the people being asked to change Complexity: The change should be no more complex than necessary; it must be as easy as possible for people to understand and use Triability: The change should be something that people can try on a step-by-step basis and make adjustments as things progress Schermerhorn; Ch. 19 11

Methods for dealing with resistance to change: Education & Communication Use When: People lack information or have inaccurate information Advantages: Creates willingness to help with change Disadvantages: Time consuming Schermerhorn; Ch. 19 12

Methods for dealing with resistance to change: Participation & Involvement Use When: Other people have important information and/or power to resist Advantages: Adds information to change planning; builds commitment to the change Disadvantages: Time consuming Schermerhorn; Ch. 19 13

Methods for dealing with resistance to change: Facilitation & Support Use When: Resistance traces to resource or adjustment problems Advantages: Satisfies directly specific resources or adjustment needs Disadvantages: Time consuming & may be expensive Schermerhorn; Ch. 19 14

Methods for dealing with resistance to change: Negotiation & Agreement Use When: A person or group will ‘lose’ something because of the change Advantages: Helps avoid major resistance Disadvantages: May be expensive Can lead others to seek similar ‘deals’ Schermerhorn; Ch. 19 15

Methods for dealing with resistance to change: Manipulation & Cooptation Use When: Other methods don’t work or are too expensive Advantages: Can be quick and inexpensive Disadvantages: Can create future problems if people sense manipulation Schermerhorn; Ch. 19 16

Methods for dealing with resistance to change: Explicit & implicit coercion Use When: Speed important and change agent has power Advantages: Quick; overpowers resistance Disadvantages: Risky if people get ‘mad’ Schermerhorn; Ch. 19 17

‘Change is stressful’ Schermerhorn; Ch. 19 18

Involve your leaders Schermerhorn; Ch. 19 19

Resistance to change should: be expected not be feared is a source of feedback than can improve change effort Schermerhorn; Ch. 19 20