1. Chapter 3 Issues related to Forces of Change
External forces for change
originate outside the organization
Internal forces for change
originate inside the organization.
External forces for change
originate outside the organization
Internal forces for change
originate inside the organization.

2. The External and Internal Forces for Change
The external and internal forces for change are presented in Figure 18–1 .

3. External Forces Demographic characteristics Technological advancements
Shareholder, customer and market changes
Social and political pressures
Demographic characteristics
Technological advancements
Shareholder, customer and market changes
Social and political pressures

4. Internal Forces Low job satisfaction Low productivity Conflict Strikes
Internal forces for change come from inside the organization. These forces can be subtle, such as low job satisfaction, or can manifest in outward signs, such as low productivity, conflict, or strikes. In general, internal forces for change come from both human resource problems and managerial behavior/decisions.

5. Question?
ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48%. This was primarily attributed to job dissatisfaction by employees. This represents a(n) ______ for ABC.
External force for change
Social and political pressure
Technological advancements
Internal force for change
The correct answer is “D” – internal force for change
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  533

6. A Generic Typology of Organizational Change
A useful three-way typology of change is displayed in Figure 18–2 . This typology is generic because it relates to all sorts of change, including both administrative and technological changes.

7. Lewin’s Change Model Unfreezing
Focus is to create the motivation to change
Begin by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes
Unfreezing
Focus is to create the motivation to change
Begin by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes

8. Lewin’s Change Model Benchmarking
the overall process by which a company compares its performance with that of other companies, then learns how the strongest-performing companies achieve their results
Benchmarking
the overall process by which a company compares its performance with that of other companies, then learns how the strongest-performing companies achieve their results

9. Question?
Fredfirst, a securities trading company, regularly compares its performance with that of high performing organizations in the industry, such as Merrill Lynch. This process is described as
Change.
Refreezing.
Benchmarking.
A strategic plan
The correct answer is “C” – benchmarking.
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  536

10. Lewin’s Change Model Changing
providing employees with new information, new behavioral models, new processes or procedures, new equipment, new technology, or new ways of getting the job done
change can be aimed at improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity
Changing
providing employees with new information, new behavioral models, new processes or procedures, new equipment, new technology, or new ways of getting the job done
change can be aimed at improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity

11. Lewin’s Change Model Refreezing
Change is supported by helping employees integrate the changed behavior or attitude into their normal way of doing things
Giving employees the chance to exhibit new behaviors, which are then reinforced
Refreezing
Change is supported by helping employees integrate the changed behavior or attitude into their normal way of doing things
Giving employees the chance to exhibit new behaviors, which are then reinforced

12. A Systems Model of Change
Systems Approach
Based on the notion that any change, no matter how large or small, has a cascading effect throughout an organization
Takes a “big picture” perspective of organizational change
Systems Approach
Based on the notion that any change, no matter how large or small, has a cascading effect throughout an organization
Takes a “big picture” perspective of organizational change

13. A Systems Model of Change
Mission statement
represents the “reason” an organization exists
Vision
a long-term goal that describes “what” an organization wants to become
A mission statement represents the “reason” an organization exists, and an organization’s vision is a long-term goal that describes “what” an organization wants to become

14. A Systems Model of Change
Strategic plan
outlines an organization’s long-term direction and the actions necessary to achieve planned results
based on results from a SWOT analysis
Strategic plan
outlines an organization’s long-term direction and the actions necessary to achieve planned results
based on results from a SWOT analysis

15. Target Elements of Change
the components of an organization that may be changed.
Organizational arrangements
Social factors
Methods
People
Target elements of change are the components of an organization that may be changed. There are four targeted elements of change: organizational arrangements, social factors, methods, and people.

16. A Systems Model of Change
A systems model of change offers managers a framework or model to use for diagnosing what to change and for determining how to evaluate the success of a change effort. The four main components of a systems model of change are inputs, strategic plans, target elements of change, and outputs (see Figure 18-3).

17. Applying the Systems Model of Change
Two ways to apply the systems model:
Aid during the strategic planning process
Using the model as a diagnostic framework to determine the causes of an organizational problem and to propose solutions
Two ways to apply the systems model:
Aid during the strategic planning process
Using the model as a diagnostic framework to determine the causes of an organizational problem and to propose solutions

18. Steps to Leading Organizational Change
John Kotter, an expert in leadership and change management, believes that organizational change typically fails because senior management makes a host of implementation errors. Kotter proposed an eight-step process for leading change (see Table 18–1 ) based on these errors.

19. Question?
Dale needs to change the manufacturing processes of his firm. This will cause many changes to his labor force. He shares a compelling reason to his employees. Which step is this in leading change?
Generate short term wins
Develop a vision and strategy
Establish a sense of urgency
Create a guiding coalition
The correct answer is “C”. See previous slide.

20. Creating Change Through Organization Development
consists of planned efforts to help persons work and live together more effectively, over time, in their organizations
Organization Development
consists of planned efforts to help persons work and live together more effectively, over time, in their organizations

21. The OD Process
OD change agents follow a medical-like model. They approach the organization as if it were a “sick” patient, “diagnose” its ills, prescribe and implement an “intervention,” and “evaluate” progress. If the evaluation reveals that positive change has not occurred, this information provides feedback that is used to refine the diagnosis and/or consider the extent to which the intervention was effectively implemented (see Figure 18–4 ).

22. OD Research and Practical Implications
Planned organizational change works
Change programs are more successful when they are geared toward meeting both short-term and long-term results
Organizational change is more likely to succeed when top management is truly committed to the change process
Effectiveness of OD interventions is affected by cross-cultural considerations
Planned organizational change works
Change programs are more successful when they are geared toward meeting both short-term and long-term results
Organizational change is more likely to succeed when top management is truly committed to the change process
Effectiveness of OD interventions is affected by cross-cultural considerations

23. A Dynamic Model of Resistance to Change
Figure 18–5 presents a model of resistance that illustrates the relationship among the three key causes of resistance. The model conceives resistance as a dynamic interaction between these three sources as opposed to being caused solely by irrational and stubborn recipients of change.

24. Causes of Resistance to Change
An emotional or behavioral response to real or imagined threats to an established work routine
Resistance to change
An emotional or behavioral response to real or imagined threats to an established work routine

25. Why People Resist Change in the Workplace
An individual’s predisposition toward change
Surprise and fear of the unknown
Fear of failure
Loss of status and/or job security
Peer pressure
Past success
An individual’s predisposition toward change
Surprise and fear of the unknown
Fear of failure
Loss of status and/or job security
Peer pressure
Past success

26. Question?
Jamie is not directly affected by the change introduced in her company, but she is actively resisting it to protect the interests of her friends. This describes which reason for resistance to change?
Surprise and fear of the unknown
Personality conflicts
Peer pressure
Lack of tact
The correct answer is “C” – peer pressure.
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  547

27. Overcoming Resistance to Change
Resilience to change
represents a composite characteristic reflecting high self-esteem, optimism, and an internal locus of control, was positively associated with recipients’ willingness to accommodate or accept a specific organizational change
Resilience to change
represents a composite characteristic reflecting high self-esteem, optimism, and an internal locus of control, was positively associated with recipients’ willingness to accommodate or accept a specific organizational change

28. Change Agent Characteristics
Decisions that disrupt cultural traditions or group relationships
Personality conflicts
Lack of tact or poor timing
Leadership style
Failing to legitimize change
Five of the key recipient characteristics are discussed below:
Decisions that disrupt cultural traditions or group relationships
Personality conflicts
Lack of tact or poor timing
Leadership style
Failing to legitimize change

29. Overcoming Resistance to Change
Provide as much information as possible to employees about the change
Inform employees about the rationale for the change
Conduct meetings to address employee’s concerns
Provide employees the opportunity to discuss how the proposed change might affect them
Employees are more likely to resist when they perceive that the personal costs of change overshadow the benefits. If this is the case, then managers are advised to (1) provide as much information as possible to employees about the change, (2) inform employees about the reasons/rationale for the change, (3) conduct meetings to address employees’ questions regarding the change, and (4) provide employees the opportunity to discuss how the proposed change might affect them.

30. Six Strategies for Overcoming Resistance to Change
As shown in Table 18–2 , Participation + Involvement does have its place, but it takes time that is not always available. Also as indicated in Table 18–2 , each of the other five methods has its situational niche, advantages, and drawbacks.

31. Defining Stress Stress
an adaptive response, mediated by individual characteristics and/or psychological processes, that is a consequence of any external action, situation, or event that places special physical and/or psychological demands upon a person
Stress
an adaptive response, mediated by individual characteristics and/or psychological processes, that is a consequence of any external action, situation, or event that places special physical and/or psychological demands upon a person

32. Defining Stress Stress is not merely nervous tension.
Stress can have positive consequences.
Stress is not something to be avoided.
The complete absence of stress is death
Stress is not merely nervous tension.
Stress can have positive consequences.
Stress is not something to be avoided.
The complete absence of stress is death

33. Defining Stress Eustress
Stress that is good or produces a positive outcome

34. A Model of Occupational Stress
Figure 18–6 shows the four major types of stressors: individual, group, organizational, and extra-organizational.

35. Moderators of Occupational Stress
Social support
the amount of perceived helpfulness derived from social relationships.
Esteem
Informational
Social
Instrumental
Social support
the amount of perceived helpfulness derived from social relationships.
• Esteem support. Providing information that a person is accepted and respected despite any problems or inadequacies.
• Informational support. Providing help in defining, understanding, and coping with problems.
• Social companionship. Spending time with others in leisure and recreational activities.
• Instrumental support. Providing financial aid, material resources, or needed services.

36. Stress Reduction Techniques
There are many different stress-reduction techniques available. The four most frequently used approaches are muscle relaxation, biofeedback, meditation, and
cognitive restructuring. Each method involves somewhat different ways of coping with stress (see Table 18–4 ).

37. Case: Louisville Slugger – Hillerich & Bradsby
What role do information systems play at H&B? What were the internal and external trade-offs between reconfiguring the old information system and designing a new one?
Why was the transition to the new system difficult? How could Kotter’s eight steps be used to facilitate such a transition?
Why did some people resist change and experience stress? What strategies could H&B have used to overcome resistance to change?
H&B had to decide whether to reconfigure the old system or implement a new one. A new system would streamline information flow in sales, supply chain management, accounting, finance, and marketing. However, the new system also caused a decrease in morale and increase in stress as employees struggled to learn the new system and change the way they operated. Kotter’s steps to leading organizational change include establishing a sense of urgency, creating a guiding coalition, developing a vision and strategy, empowering broad-based action, generating short-term wins, consolidating gains, and anchoring new approaches in the organization’s culture. Successful implementation of these steps facilitate organizational change. Surprise and fear of the unknown, fear of failure, and loss of status or job security were likely reasons H&B employees resisted change and experienced stress in the transition process.