2. COMMUNICATION IN ORGANIZATIONS Lecture 10a PLANNED CHANGE IN ORGANIZATIONS

3. Two Types of Change There are 2 types of change that take place in an organization: There are 2 types of change that take place in an organization: Unplanned Change: Unplanned Change: reactive response usually focuses on specific processes and outcomes – often incremental Planned Change: Planned Change: conscious decision about outcomes and process; focus on continuous improvement; takes a number of processes into consideration Sustaining long-term success planned changed programs requires commitment and leadership as organizational relationships are changed Sustaining long-term success planned changed programs requires commitment and leadership as organizational relationships are changed

4. If You Wait, You’re Dead Globalization of markets, downsizing of workforce, flattening of hierarchy, reengineering of work processes, and spread of information technology are all part of a revolution in the way we do business Globalization of markets, downsizing of workforce, flattening of hierarchy, reengineering of work processes, and spread of information technology are all part of a revolution in the way we do business Change programs don’t happen accidentally - they are initiated with a specific purpose and require some form of leadership to function properly Change programs don’t happen accidentally - they are initiated with a specific purpose and require some form of leadership to function properly Typical large-scale change effort is initiated in response to, or in anticipation of, external environmental changes Typical large-scale change effort is initiated in response to, or in anticipation of, external environmental changes

5. FACTORS INFLUENCING CHANGE EXTERNAL FACTORS Economic and Market Changes – caused by customers, competition, federal budget, international relations Economic and Market Changes – caused by customers, competition, federal budget, international relations Technological intervention - three factors Technological intervention - three factors a) organizations reach a point with a given technology where no further can be made without adopting a new technology a) organizations reach a point with a given technology where no further can be made without adopting a new technology

6. FACTORS INFLUENCING CHANGE INTERNAL FACTORS: Changes in focus of core processes Changes in focus of core processes Shift in product line, or in the way a product is created Shift in product line, or in the way a product is created IBM from building computers to computer consulting – integrating diverse systems IBM from building computers to computer consulting – integrating diverse systems Changing Employee Demographics Changing Employee Demographics a) Greater numbers of women a) Greater numbers of women b) Cultural diversity b) Cultural diversity c) Older workers c) Older workers

7. Major Goals of Large Scale Change Programs 1. Increase productivity 2. Increase responsiveness to clients 3. Improve competitive positioning 4. Increase employee involvement and participation 5. Increase employee morale 6. Develop new managerial skills and strategies

8. Is Change Easy? All these are positive goals All these are positive goals One might think that organizational change would come easily once they are made clear to everyone One might think that organizational change would come easily once they are made clear to everyone Not quite Not quite Besides the forces pushing for change there are always in each person and each organization forces pushing back Besides the forces pushing for change there are always in each person and each organization forces pushing back

9. LEWIN’S MODEL OF CHANGE

10. CHANGE HAPPENS AT THREE LEVELS FOR THE INDIVIDUAL TASK TASK PREVIOUS BEHAVIOR NEW SPECIFIC LOSS OF COMPETENCE? PATTERNS & PERFORMANCES RELATIONSHIPS NEW SELF-SUSTAINING RELATIONSHIPS NEW SELF-SUSTAINING SUPPORTIVE RELATIONSHIPS RELATIONSHIPS LOSS OF BELONGING/CAMARADERIE IDENTITY NEW LEVEL OF ESTEEM IDENTITY NEW LEVEL OF ESTEEM SELF-ESTEEM AND VALUED WORKAND SKILLS LOSS OF SELF-ESTEEM MUST BECOME MUST BECOME

11. LEWIN’S THREE PHASE INFLUENCE AND CHANGE PROCESS UNFREEZING: AROUSE MOTIVATION TO CHANGE UNFREEZING: AROUSE MOTIVATION TO CHANGE –LACK OF CONFIRMATION OR DISCONFIRMATION –REDUCTION OF THREAT/REMOVAL OF BARRIER TO CHANGE CHANGING: DEVELOPING NEW ATTITUDES, BEHAVIORS BASED ON NEW INFORMATION CHANGING: DEVELOPING NEW ATTITUDES, BEHAVIORS BASED ON NEW INFORMATION –IDENTIFICATION: INFORMATION FROM SINGLE SOURCE –SCANNING: INFORMATION FROM MULTIPLE SOURCES REFREEZING: STABILIZE/INTEGRATE CHANGES REFREEZING: STABILIZE/INTEGRATE CHANGES –INTEGRATE NEW RESPONSES INTO PERSONALITY –INTEGRATE NEW RESPONSES INTO RELATIONSHIPS

12. WHY RESIST ORGANIZATIONAL CHANGE – INDIVIDUAL- LEVEL ? NO FELT NEED FOR CHANGE NO FELT NEED FOR CHANGE NOT AWARE OF BIGGER PICTURE NOT AWARE OF BIGGER PICTURE FEAR OF THE UNKNOWN FEAR OF THE UNKNOWN LOSS OF COMPETENCE LOSS OF COMPETENCE RUMORS AND FANTASIES FILL THE UNKNOWN RUMORS AND FANTASIES FILL THE UNKNOWN FEAR OF CHANGED RELATIONSHIPS FEAR OF CHANGED RELATIONSHIPS LOSS OF CONNECTION/CAMARADERIE LOSS OF CONNECTION/CAMARADERIE

13. WHY RESIST ORGANIZATIONAL CHANGE – ORGANIZATIONAL LEVEL ? THREATS TO STATUS AND INFLUENCE THREATS TO STATUS AND INFLUENCE LOSS OF CONTROL AT MANAGEMENT LEVEL LOSS OF CONTROL AT MANAGEMENT LEVEL ORGANIZATION STRUCTURE ORGANIZATION STRUCTURE MORE CLASSIC BUREAUCRACY – HIGHER PYRAMID – HARDER TO CHANGE MORE CLASSIC BUREAUCRACY – HIGHER PYRAMID – HARDER TO CHANGE LACK OF RESOURCES LACK OF RESOURCES NO TIME, MONEY, APPROVALS NO TIME, MONEY, APPROVALS

14. How Not to “Do Change” Large firm – senior mgt. decides to purchase state of the art technology. Large firm – senior mgt. decides to purchase state of the art technology. Supposed to cut 50% off cycle time – from customer order to delivery Supposed to cut 50% off cycle time – from customer order to delivery Snr. Mgt. worked on strategy for a long time when they purhased it the software was launched - big announcement and celebration. Snr. Mgt. worked on strategy for a long time when they purhased it the software was launched - big announcement and celebration. CEO assured a delighted sales force that they had the high-tech advantage. CEO assured a delighted sales force that they had the high-tech advantage. Soon after launch sales forces realized that all their years of experience were useless – successful veterans felt like beginners. Soon after launch sales forces realized that all their years of experience were useless – successful veterans felt like beginners. When president heard they were shaky on using the software, he said – “Get that new VP in HR – what’s her name - to throw together something for these wimps. Let’s get them moving.” When president heard they were shaky on using the software, he said – “Get that new VP in HR – what’s her name - to throw together something for these wimps. Let’s get them moving.” A year later the new tech failed to deliver on the its promise – advantage lost – investment wasted. A year later the new tech failed to deliver on the its promise – advantage lost – investment wasted.

15. OVERCOMING RESISTANCE TO CHANGE REQUIRES SOME COMBINATION OF EDUCATION EDUCATION –KEEPING PEOPLE WHO ARE AFFECTED BY THE CHANGE INFORMED ABOUT THE PROCESS SUPPORT SUPPORT –UNDERSTAND HOW PEOPLE ARE EXPERIENCING CHANGE AND FOR THOSE WITH TROUBLE PROVIDE EMPATHY AND HELP PARTICIPATION PARTICIPATION –INVOLVING PEOPLE IN PLANNING AND CARRYING OUT THE CHANGE - THEY CAN “OWN” THE CHANGES

16. SIX SPECIFIC STRATEGIES: DEALING WITH RESISTANCE TO CHANGE EDUCATION AND COMMUNICATION EDUCATION AND COMMUNICATION –WHEN THERE IS LACK OF INFO FOR CHANGEE’S PARTICIPATION AND INVOLVEMENT PARTICIPATION AND INVOLVEMENT –CHANGERS DON’T HAVE ALL INFO AND CHANGEES CAN RESIST FACILITATION AND SUPPORT FACILITATION AND SUPPORT –CHANGEES ARE UNABLE TO ADJUST NEGOTIATION AND AGREEMENT NEGOTIATION AND AGREEMENT –WHERE ONE GROUP WILL LOSE AND HAS POWER TO RESIST MANIPULATION AND CO-OPTATION MANIPULATION AND CO-OPTATION –WHERE OTHER TACTICS FAIL OR COST TOO MUCH EXPLICIT AND IMPLICIT COERCION EXPLICIT AND IMPLICIT COERCION –SPEED IS ESSENTIAL AND CHANGERS HAVE POWER Notice that the first three are “the common ways.” Notice that the first three are “the common ways.” And they need to start before not after the change has already happened. And they need to start before not after the change has already happened. They take time and if they don’t work, org.s often use the last three… They take time and if they don’t work, org.s often use the last three…