Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Change and Development Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. OD Activities  Team Building: enhances the cohesiveness and success of organizational groups and teams.  Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization.  Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Organizational Change Four major types of change:  Technology: ·General rule is that technology change is bottom up.  New product: ·Companies that successfully develop new products: ·Horizontal linkage model emphasizes shared development of innovations among several departments. ·Time-based competition is based on the ability to deliver products and services faster than competitors.  Structure: ·Successful structural change is accomplished through a top-down approach.  Culture/people: ·Training is the most frequently used tool for changing the organization’s mind-set. Continental Airlines

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Two Types of Planned Change  Incremental Change based on efforts to improve basic work and organizational processes.  Transformational Change involves redesign and renewal of the total organization.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Model of Change Sequence of Events Environmental Forces Internal Forces Implement Change Initiate Change Need for Change Monitor global competition, customers, competitors, and other factors. Consider plans, goals, company problems, and needs. Evaluate problems and opportunities, define needed changes in technology, products, structure, and culture. Facilitate search, creativity, idea champions, and venture teams. Use force field analysis, tactics for overcoming resistance.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Need for Change  Based on external or internal forces.  Performance gap-a disparity between existing and desired performance levels.  Performance gap may occur because: –current procedures are not up to standard. –a new idea or technology could improve current performance.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Idea Champion A person who sees the need for and champions productive change within the organization.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Promoting Corporate Innovation  New-Venture Teams  Skunkworks  Idea Incubator The original skunkworks was created by Lockheed Martin more than 50 years ago.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Facilitating of New Ideas  Creative Culture  New Venture Teams  Idea Champions  Idea Incubators

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Resistance to Change  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected by innovation may assess the situation differently. Managers and employees often seem to prefer the status quo.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Using Force Field Analysis to Change from Traditional to JIT Inventory System

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Types of Organizational Change TechnologyStrategy Structure Products Culture/People SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” in New Perspectives in Organization Research, ed. W. W. Cooper, H. J. Leavitt, and M. W. Shelly II (New York: Wiley, 1964),

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Horizontal Linkage Manufacturing Department Marketing Department Research Department New Technology Customers, Market Conditions Organization

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Technology Change Related to organization’s production process. Designed to enhance efficiency. General “Bottom-Up.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Changing People & Culture Tools  Organizational development.  Training and development programs.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Organizational Development Can help managers address: mergers/acquisitions. organizational decline/revitalization. conflict management.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Achieving Behavioral and Attitudinal Change Unfreezing: diagnosis stage. participants are made aware of problems in order to increase their willingness to change their behavior. Changing: intervention stage. individuals experiment with new workplace behavior. Re-freezing: reinforcement stage. individuals acquire a desired new skill or attitude and are rewarded for it by the organization.