Chapter 18 Managing Change Identify the major external and internal forces for change in organizations. Describe how different types of change vary in scope. Discuss methods organizations can use to manage resistance to change. Explain Lewin’s organizational change model. Explain how companies determine the need to conduct an organizational development intervention. Discuss the major group-focused techniques for organization development intervention. Discuss the major individual-focused techniques for organization development intervention. Learning Outcomes © 2011 Cengage Learning. All rights reserved.

Organizational Changes LO1 Planned Change – change resulting from a deliberate decision to alter the organization Unplanned Change – change that is imposed on the organization and is often unforeseen © 2011 Cengage Learning. All rights reserved.

External Forces for Change LO1 Workforce Diversity Globalization Changing Technology Ethical Behavior © 2011 Cengage Learning. All rights reserved. 3

Internal Forces for Change LO1 Declining Effectiveness Changes in expectations Changes in work climate Crisis © 2010 Cengage Learning. All rights reserved. 3

© 2011 Cengage Learning. All rights reserved. Scope of Change LO2 Incremental Change – change of a relatively small scope, such as making small improvements Strategic Change – change of a larger scale, such as organizational restructuring Transformational Change – change in which the organization moves to a radically different, and sometimes unknown, future state © 2011 Cengage Learning. All rights reserved. 7

© 2011 Cengage Learning. All rights reserved. The Change Agent LO2 Individual or group that undertakes the task of introducing and managing a change in an organization. Internal or external © 2011 Cengage Learning. All rights reserved. 8

© 2011 Cengage Learning. All rights reserved. Resistance to Change LO3 Fear of the unknown Fear of loss Fear of failure Disruption of interpersonal relationships Personality conflicts Politics Cultural assumptions and values © 2011 Cengage Learning. All rights reserved. 11

Dealing with Resistance to Change LO3 Communication details rationale Participation in the process ownership commitment Empathy and support © 2011 Cengage Learning. All rights reserved. 12

© 2011 Cengage Learning. All rights reserved. Lewin’s Change Model LO4 Unfreezing Moving Refreezing Reducing forces For status quo Developing new attitudes, values, and behaviors Reinforcing new attitudes, values, and behaviors Unfreezing: the organization eliminates rewards for current behavior Moving: the organization initiates new options and explains their rationale Refreezing: organizational culture and formal reward systems encourage the new behaviors © 2011 Cengage Learning. All rights reserved. 16

Force Field Analysis of Decision to Engage in Exercise LO4 Forces for change Weight gain Minimally passing treadmill test Feel lethargic; have no energy Family history of cardiovascular disease New, physically demanding job Forces for status quo 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 physical education class Equilibrium © 2010 Cengage Learning. All rights reserved. 15

Organizational Development (OD) a systematic approach to organizational improvement that applies to organizational improvement in order to increase individual and organizational well-being and effectiveness © 2011 Cengage Learning. All rights reserved. 17

Diagnosis and Needs Analysis LO5 Diagnosis and Needs Analysis Diagnosis and needs analysis Intervention Follow-up Questions to ask: What are the forces for change? What are the forces preserving the status quo? What are the most likely sources of resistance? What are the goals to be accomplished by change? © 2011 Cengage Learning. All rights reserved. 18

Group-Focused Techniques 5 LO6 Group-Focused Techniques Survey feedback Management by objectives (MBO) Product and service quality programs Team building Process consultation © 2011 Cengage Learning. All rights reserved.

Individual-Focused Techniques LO7 Skills training Leadership training & development Executive coaching Role negotiation Job redesign Health promotion programs Career planning © 2011 Cengage Learning. All rights reserved.