Change, Conflict, and Negotiation Chapter 16 (Lecture Outline Presentation) Change, Conflict, and Negotiation

Chapter Objectives Identify and describe four types of organizational change according to the Nadler-Tushman model. Explain how people tend to respond differently to changes they like and those they dislike. List a least six reasons why employees resist changes and discuss what management can do about resistance to change. Describe how the unfreezing-change-refreezing analogy applies to organization development (OD). Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Objectives (cont’d) Describe tempered radicals and identify the 5Ps in the checklist for change agents. Contrast competitive and cooperative conflict styles. Identify and describe five conflict resolution techniques. Identify and describe the elements of effective negotiation and explain the advantage of added value negotiating (AVN). Copyright © Houghton Mifflin Company. All rights reserved.

Change: Organizational 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. Copyright © Houghton Mifflin Company. All rights reserved.

Change: Organizational Perspectives (cont’d) Tuning The most common, least intense, and least risky type of change. Also known as preventive maintenance and kaizen (continuous improvement). Key is to actively anticipate and avoid problems rather than waiting for something to go wrong. Adaptation Incremental changes that are in reaction to external problems, events, or pressures. Copyright © Houghton Mifflin Company. All rights reserved.

Change: Organizational Perspectives (cont’d) Reorientation Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected. Also called “frame bending” (Nadler and Tushman). Re-Creation Intense and risky decisive change that reinvents the organization. Also called “frame breaking” (Nadler and Tushman). Copyright © Houghton Mifflin Company. All rights reserved.

Individual Reactions to Change How People Respond to Changes They Like Three-stage process Unrealistic optimism Reality shock Constructive direction Copyright © Houghton Mifflin Company. All rights reserved.

Individual Reactions to Change (cont’d) How People Respond to Changes They Fear and Dislike Stages Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction Copyright © Houghton Mifflin Company. All rights reserved.

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 and lack of skills Without introductory or remedial training, change may be perceived negatively. Copyright © Houghton Mifflin Company. All rights reserved.

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. Copyright © Houghton Mifflin Company. All rights reserved.

Why Do Employees Resist Change? (cont’d) Personality Conflicts Managers who are disliked by their managers are poor conduits for change. Poor Timing Other events can conspire to create resentment about a particular change. Lack of Tact No showing sensitivity to feelings can create resistance to change. Copyright © Houghton Mifflin Company. All rights reserved.

Why Do Employees Resist Change? (cont’d) Threat to Job Status/Security Employees worry that any change may threaten their job or security. Breakup of Work Group Changes can tear apart established on-the-job social relationships. Competing Commitments Change can disrupt employees in their pursuit of other goals. Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

Making Change Happen Two Approaches to Organization Change Organization Development (OD) Formal top-down approach Grassroots Change An unofficial and informal bottom-up approach Copyright © Houghton Mifflin Company. All rights reserved.

Planned Change Through Organization Development (OD) Planned change programs intended to help people and organizations function more effectively. Applying behavioral science principles, methods, and theories to create and cope with change. Copyright © Houghton Mifflin Company. All rights reserved.

Planned Change Through Organization Development (OD) (cont’d) 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. Copyright © Houghton Mifflin Company. All rights reserved.

Planned Change Through Organization Development (OD) (cont’d) The OD Process Unfreezing, change, refreezing (Kurt Lewin) Unfreezing: neutralizing resistance by preparing people for change. Refreezing: systematically following a change program for lasting results. Copyright © Houghton Mifflin Company. All rights reserved.

Unofficial and Informal Grassroots Change Tempered Radicals People who quietly try to change the dominant organizational culture in line with their convictions. Guidelines for tempered radicals Think small for big results. Be authentic. Translate. Don’t go it alone. Copyright © Houghton Mifflin Company. All rights reserved.

Managing Conflict Dealing with the Two Faces of Conflict Competitive conflict: parties are pursuing directly opposite (win-lose) goals. Cooperative conflict: a mutually reinforcing experience (win-win) that serves the best interests of both parties. Conflict Triggers Conflict trigger: any factor that increases the chances of conflict. Copyright © Houghton Mifflin Company. All rights reserved.

Managing Conflict (cont’d) Types of Conflict Triggers (cont’d) Ambiguous or overlapping jurisdictions. Competition for scarce resources. Communication breakdowns. Time pressure. Unreasonable standards, rule, policies, or procedures. Personality clashes. Status differentials. Unrealized expectations. Copyright © Houghton Mifflin Company. All rights reserved.

Managing Conflict (cont’d) Resolving Conflict: Conflict Resolution Techniques Problem solving Superordinate goals Compromise Forcing Smoothing Copyright © Houghton Mifflin Company. All rights reserved.

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) Copyright © Houghton Mifflin Company. All rights reserved.

Negotiating (cont’d) Elements of Negotiation Adopting a win-win attitude Understanding that mutual beneficial agreement addresses the both parties’ interests. Knowing your BTNA (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. Copyright © Houghton Mifflin Company. All rights reserved.

Negotiating (cont’d) Added Value Negotiating (AVN) A practical five-step win-win process involving development of multiple deals. Clarify subjective and objective interests; seeking common ground. Identify options and their marketplace values. Design alternative deal packages that foster a creative agreement. Select a mutually acceptable deal that is most feasible for both parties. Perfect the deal by hammering out unresolved details. Copyright © Houghton Mifflin Company. All rights reserved.