Prepared by Charlie Cook The University of West Alabama © 2010 South-Western, a part of Cengage Learning All rights reserved. Organization Change and Development Chapter 19

19–2 © 2009 South-Western, a part of Cengage Learning Chapter Learning Objectives Summarize the dominant forces for change in organizations. Describe the process of planned organization change. Discuss several approaches to organization development. Explain resistance to change. Identify the keys to managing successful organization change and development. After studying this chapter you should be able to:

19–3 © 2009 South-Western, a part of Cengage Learning Forces for Change People Competition Technology Information Processing and Communication Areas of Pressure for Change

19–4 © 2009 South-Western, a part of Cengage Learning Table 19.1Pressures for Organization Change

19–5 © 2009 South-Western, a part of Cengage Learning Processes for Planned Organization Change Lewin’s Process Model  Planned organization change requires a systematic process of movement from one condition to another Unfreezing –Process by which people become aware of the need for change Change –Movement from the old way of doing things to a new way Refreezing –Process of making new behaviors relatively permanent and resistant to further change

19–6 © 2009 South-Western, a part of Cengage Learning Figure 19.1Lewin’s Process of Organizational Change

19–7 © 2009 South-Western, a part of Cengage Learning Processes for Planned Organization Change (cont’d) The Continuous Change Process Model  Incorporates the forces for change, a problem-solving process, a change agent, and transition management  Takes a top management perspective Perceives forces and trends that indicate need for change Determines alternatives for change Selects the appropriate alternative

19–8 © 2009 South-Western, a part of Cengage Learning Figure 19.2Continuous Change Process Model of Organization Change

19–9 © 2009 South-Western, a part of Cengage Learning Processes for Planned Organization Change (cont’d) The Continuous Change Process Model (cont’d)  Change agent: a person responsible for managing a change effort Assists management with problem recognition/definition Can be involved in generating/evaluating potential action plans Can be from inside or outside of the organization Implements the change Measures, evaluates, controls the desired results  Transition management Process of systematically planning, organizing, and implementing change

19–10 © 2009 South-Western, a part of Cengage Learning Organization Development Organization Development (OD)  The process of planned change/improvement of the organization through the application of knowledge of the behavioral sciences System-Wide Organizational Development  Structural Change Is a comprehensive system-wide rearrangement of task division, authority, reporting relationships Affects performance appraisal and rewards, decision-making, communication, information-processing systems

19–11 © 2009 South-Western, a part of Cengage Learning Organization Development (cont’d) Contemporary Approaches to System-Wide OD Reengineering Rethinking Quality of Work Life

19–12 © 2009 South-Western, a part of Cengage Learning Figure 19.3Walton’s Categorization of Quality-of-Work-Life Programs Reference: Adapted from Richard E. Walton, “Quality of Work Life: What Is It?” Sloan Management Review, Fall 1973, pp. 11–21, by permission of the publisher. Copyright © 1973 by the Sloan Management Review Association. All rights reserved.

19–13 © 2009 South-Western, a part of Cengage Learning Organization Development (cont’d) Task and Technological Change  Task redesign Changing tasks involved in doing the work, the technology, or both  Technological change Changing how inputs are transformed into outputs Griffin’s integrated framework for introducing job changes Nine steps that reflect the complexities of the interfaces between individual jobs and the total organization

19–14 © 2009 South-Western, a part of Cengage Learning Table 19.2Integrated Framework for Implementation of Task Redesign in Organizations Reference: Ricky W. Griffin, Task Design: An Integrative Framework (Glenview, IL: Scott, Foresman, 1982), p Used by permission.

19–15 © 2009 South-Western, a part of Cengage Learning OD: Group and Individual Change People- Oriented Change Techniques Training Management Development Team Building Survey Feedback

19–16 © 2009 South-Western, a part of Cengage Learning OD: Group and Individual Change (cont’d) Training  Purpose: Improve employees’ current job skills or impart new skills  Methods: Lecture, discussion, lecture-discussion combination, experiential methods, case studies, films/video tapes  Locations: Classroom, on and off company property, at a hotel, resort, and conference centers, and on-the-job  Major difficulty: Transferring learning to the workplace

19–17 © 2009 South-Western, a part of Cengage Learning OD: Group and Individual Change (cont’d) Management Development Programs  Multifaceted, complex, long-term process with no quick and simple approach: Organizations should identify carefully and systematically their unique development needs and existing programs Management development objectives must be compatible with organizational objectives The utility and value of management development is not proven

19–18 © 2009 South-Western, a part of Cengage Learning OD: Group and Individual Change (cont’d) To set team goals and priorities To examine relationships among those doing the work To analyze and allocate the way work is performed To examine how a group is working Team Building Goals

19–19 © 2009 South-Western, a part of Cengage Learning OD: Group and Individual Change (cont’d) Survey Feedback  Provides information about employees’ beliefs and attitudes  Can assist management with problem-solution diagnosis  Data are returned to employee groups at all organization levels  Data are used by all employees working together in their normal work groups to identify/solve problems Digital Vision at Getty Images®

19–20 © 2009 South-Western, a part of Cengage Learning Figure 19.4The Survey Feedback Process

19–21 © 2009 South-Western, a part of Cengage Learning Resistance to Change The Resistance to Change Paradox  Organizations invite change when change offers competitive advantage  Organizations resist change when change threatens the organization’s structure and control systems  Organizations must balance stability (permanence) with the need to react to external shifts (change)  Resistance can warn of the need to reexamine the need for change

19–22 © 2009 South-Western, a part of Cengage Learning Resistance to Change: Sources of Resistance to Change (Katz and Kahn) Organizational Sources  Overdetermination  Narrow focus of change  Group inertia  Threatened expertise  Threatened power  Resource allocation changes Individual Sources  Habit  Security  Economic factors  Fear of the unknown  Lack of awareness  Social factors

19–23 © 2009 South-Western, a part of Cengage Learning Table 19.3Organizational and Individual Sources of Resistance

19–24 © 2009 South-Western, a part of Cengage Learning Managing Successful Organization Change and Development Keys to Managing Change in Organizations  Consider international issues  Take a holistic view  Start small  Secure top management support  Encourage participation by those affected by the change  Foster open communication  Reward those who contribute to change

19–25 © 2009 South-Western, a part of Cengage Learning Table 19.4Keys to Managing Successful Organization Change and Development

19–26 © 2009 South-Western, a part of Cengage Learning Organizational Behavior in Action After reading the chapter:  In the chapter opening case, how does the return of Michael Dell to Dell compare with the return of Howard Schultz to Starbuck’s?  Which pressures for organizational change are likely to increase when economic conditions decline? When they improve?  Which individual source of resistance to change likely causes students to perform poorly in school? How could the resistance be overcome?