Chapter 14 organizational change and development Michael A. Hitt C. Chet Miller Adrienne Colella Pages 528-566.

? Knowledge Objectives Describe three major internal pressures for change. Identify and explain six major external pressures for change. Describe the three-phase model of planned change. Discuss important tactical choices involving the speed and style of a change effort. Explain the four general causes of resistance to change and the tactics that can be used to address each cause. Discuss the role of the DADA syndrome in organizational change. Describe the basic organization development (OD) model and discuss OD interventions, including relationship techniques and structural techniques. See page 528.

Pressures for Change Pressure for Change Life-Cycle Forces Aspirations Introduction or Removal of Government Regulations Life-Cycle Forces Growing International Interdependence Changes in Demographics Shifting Political Dynamics Changes in Societal Values Technological Advances Aspirations Pressure for Change See page 531. Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change

Internal Pressures for Change Aspiration-performance Discrepancies Gaps between what an individual, unit, or organization wants to achieve and what its achieving. Aspirations develop through; past aspirations past performance comparison with others See pages 531-532.

Internal Pressures for Change Life-cycle Forces Natural and predictable pressures that build as an organization grows and that must be addressed to continue growing. See page 532.

Entrepreneurial Stage Formalization and Control Stage Integrative Life-Cycle Model Entrepreneurial Stage Collectivity Stage Need for additional people Need for stability and structure Formalization and Control Stage See page 532. Need for balance Elaboration Stage Adapted from Exhibit 14-2: Integrative Life-Cycle Model

External Pressures for Change Technological Advances Government Regulations Societal Values Political Dynamics Demographics International Interdependence See pages 534-539.

Planned Change Process involving deliberate efforts to move from a current undesirable state to a more desirable state. See page 539.

Process of Planned Change Unfreezing Provide rational for change Create sense of safety with change Create guilt/anxiety about not changing Moving Provide information supporting change Bring about shifts in behavior Refreezing Implement new evaluation systems Implement new hiring and promotion systems See page 539. Adapted from Exhibit 14-3: Process of Planned Change

Factors to Consider Position Power Informal Credibility Expertise Proven Leadership See pages 542-543.

Tactical Choices Speed of Change Style of Change Urgency Degree of Support Amount and Complexity Competitive Environment Knowledge and Skills Financial and Other Resources Top-down Style Participatory Style Urgency Degree of Support Referent and Expert Power of Change Leaders See pages 543-544.

Resistance to Change Efforts to block the introduction of new approaches. See page 544.

Low Tolerance for Change Resistance Factors Lack of Understanding Assessments Different Self-Interest Low Tolerance for Change See pages 544-546.

The DADA Syndrome Denial – ignore possible or current change Anger – individuals facing unwanted change become angry about the change Depression – individuals experience emotional lows See page 546. Acceptance – individuals embrace the reality of the situation and make the best of it

Organizational Development (OD) Organization- wide continuous process designed to improve communication, problem solving, and learning through behavioral science knowledge. See page 548.

Diagnosis of Situation Introduction of interventions Basic Organization Development Model Diagnosis of Situation Introduction of interventions Progress Monitoring Feedback See page 549. Adapted from Exhibit 14-4: Basic Organization Development Model

Organization Development Interventions Relationship Techniques Structural Techniques T-group Training Team Building Survey Feedback Job Redesign Management by Objectives Supplemental Organizational Processes See page 551. Adapted from Exhibit 14-5: Organization Development Interventions

Relationship Techniques t-group training group exercises individual focus on their actions how others perceive their actions how others react to them learn about unintended negative consequences of behavior Team Building team members work together work with a facilitator diagnose task, process and interpersonal problems create solutions Survey Feedback data obtained from questionnaires managers receive information for their unit expected to hold meeting to discuss problems See pages 551-552.

Team-building Tips Right people Large block of uninterrupted time High-priority problem/opportunity Identified problem/opportunity Structure Realistic solutions Implement Follow up See page 552.

Structural Techniques Job Redesign enlargement of jobs enrichment of jobs motivates; problem solving, communication, learning by Objectives Management individuals negotiate task objectives with managers held accountable for attainment Supplemental Organizational Processes ongoing meetings between associates and/or managers understand and address problems See page 553.

Organizational Learning Exploitative Learning Exploratory Learning How to more effectively use current knowledge Creating new knowledge and being innovative See page 554.

Successful OD Qualities Across Cultures… Flexibility openness to new willingness to change Knowledge Specific understanding beliefs and behavior of different cultures Interpersonal Sensitivity ability to listen and resolve problems See page 555.

Check out http://wileymanagementupdates.com/ Strategic lens Why do organizations need to make changes on a regular basis? What are the major causes of these changes? Why is it so difficult for people to change their behavior, even when they know it is important to do so? If you were in a managerial position and believed that a major change in your unit’s structure was needed, what actions would you take to ensure that the change was made effectively? See page 555. Check out http://wileymanagementupdates.com/ for daily articles related to management in the news .