Organizational Change and Development Essentials of Organizational Behavior, 9/e Stephen P. Robbins/Timothy A. Judge Chapter 16 Organizational Change and Development

After studying this chapter, you should be able to: Describe forces that act as stimulants to change Contrast two views of change Summarize Lewin’s three-step change model Describe factors that lead to resistance to change and how resistance can be reduced

After studying this chapter, you should be able to: Explain the values underlying most organizational development (OD) efforts Contrast continuous improvement and process reengineering Describe potential sources of, and ways of managing, work stress List characteristics of a learning organization Explain how organizational change may be culture-bound

Forces for Change

Change Agents Persons in organization responsible for managing change activities Can be managers or nonmanagers, current employees, newly hired employees or outside consultants

“Calm Waters” Simile

Lewin Unfreezing can be achieved by: Increase driving forces that direct behavior away from the status quo Decrease restraining forces that hinder movement from the existing equilibrium Combine the two above approaches

“White-Water Rapids” Simile Stability and predictability don’t exist No occasional and temporary disruptions in the status quo, happens all the time Face constant change, bordering on chaos

Resistance to Change Habit Security Structural Inertia Limited Focus of Change

Overcoming Resistance to Change Education and Communication Participation Building Support and Commitment Selecting People who Accept Change Coercion

Organizational Development Respect for People Trust and Support Power Equalization Confrontation Participation

OD Interventions Sensitivity Training Survey Feedback Process Consultation Intergroup Development Appreciative Inquiry

Contemporary Issues How are changes in technology affecting the work lives of employees? How do I reduce stress among my work staff? How do managers create organizations that continually learn and adapt? Is managing change culture-bound?

Technology in the Workplace Continuous Improvement Process – recognizes that good isn’t good enough and performance should be improved upon; constant reduction in variability Process Reengineering – How you would do things if you could start over from scratch

Stress Dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he desires and for which the outcome is perceived to be both uncertain and important Managing Stress Organizational: Employee Selection, Organizational Communication, Goal-setting Programs, Job Redesign Personal: Counseling, Time Management, Physical Activity

Creating a Learning Organization An organization that has developed the continuous capacity to adapt and change Single-loop learning – when errors are detected, the correction process relies on past routines and present policies Double-loop learning – when an error is detected, it’s corrected in ways that involve the modification of the organization’s objectives, policies and standard routines

Characteristics of Learning Organization

Learning Organizations Remedy for three inherent problems in organizations Fragmentation Competition Reactiveness How to make a firm a learning organization Establish a strategy Redesign the organization’s structure Reshape the organization’s culture

Managing Change: It’s Culture Bound Cultures influence answers to: Do people believe change is possible? If it’s possible, how long will it take to bring about? Is resistance to change greater in some cultures than in others? Does culture influence how change efforts will be implemented? Do successful idea champions do things differently in different cultures?

Implications for Managers The need for change encompasses almost all the concepts within OB The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels Managers must continually act as change agents

Summary Described forces that act as stimulants to change Contrasted two views of change Summarized Lewin’s three-step change model Described factors that lead to resistance to change and how resistance can be reduced

Summary Explained the values underlying most organizational development (OD) efforts Contrasted continuous improvement and process reengineering Described potential sources of, and ways of managing, work stress Listed characteristics of a learning organization Explained how organizational change may be culture-bound

For Next Class ASSIGNMENT: Write a ½ page (single-spaced) paper answering two questions: What area of Organizational behavior – what we covered in this course did you find most interesting? Why?