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Newstrom
12/e PPT
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Chapter Fourteen
Managing Change
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Chapter Objectives
To understand:
The nature of change
Cost and benefits of change
Resistance to change
Basic frameworks for interpreting change
Role of transformational leadership in change
Practices to build support for change
Meaning and characteristics of OD
Benefits and limitations of OD
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Introduction
Facts of life about change:
It is everywhere
It is constant
Its pace is accelerating
Organizations must decide:
Not whether to change
But when and how to do it
Convincing employees of need for change is difficult to do
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Change at Work
The nature of change:
Effects are widespread
Human and technical problems
Managers have proactive and reactive roles
Responses to change:
Experiments relating lighting to productivity
Individual attitudes affect response
Feelings are nonlogical
The Hawthorne effect
Observation affects behavior
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6. Group Response to Change
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Change at Work
Homeostatis
A group tends to return to its perceived best way of life when any change occurs
People establish a steady state of need fulfillment and protect themselves from disturbance of that balance
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Change at Work
Costs and Benefits
Psychic costs
Repetitive change syndrome
No clear-cut, 100 percent benefit for all parties
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Resistance to Change
Any behavior designed to discredit, delay, or prevent a work change
Change threatens employee needs for:
Security
Social interaction
Status
Competence
Self-esteem
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Resistance to Change
Other Causes of Resistance
Culture over-values criticism of new ideas
Employees support ideas in public but undercut changes behind the scenes
Managers who suffer from “analysis paralysis”
Emphasis on flashy proposals, not follow-through
A “bunker” mentality
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Resistance to Change
Nature and Effects
Perceived threats can be real or imagined, intended or unintended, direct or indirect, large or small
Resistance doesn’t respect type of dress or job
Some changes are actively sought by employees
Change can be a success or a problem, depending on how skillfully it is managed
Chain-reaction effect may develop
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Resistance to Change
Reasons for Resistance
Nature of the change itself
Method by which change is introduced
Someone else appears to gain the benefits
From Resistance to Acceptance
Denial
Anger
Depression
Search for alternative
Acceptance
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Resistance to Change
Types of Resistance
Logical, rational
Psychological, emotional
Social factors, group interests
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Resistance to Change
Possible Benefits of Resistance
Discourages careless management decisions
Identifies problem areas where change may cause difficulties
Encourages better communication
Helps management gauge intensity of employee emotions on an issue
Provides emotional release for pent-up employee feelings
Thinking and talking about the change encourages employees to better understand it
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15. Implementing Change Successfully
Dynamic environments require change; it is now the norm.
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16. Implementing Change Successfully
Transformational Leadership and Change
Management needs a master strategy
Learning organizations are needed
Transformational Leaders
Creating vision
Communicating charisma
Stimulating learning
Double-loop learners challenge their own thinking
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17. Implementing Change Successfully
Stages Of Change
Unfreezing
Changing
Refreezing
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18. Implementing Change Successfully
Manipulating the Forces
Equilibrium between supporting and restraining forces
Introducing Change
Add new supporting forces
Remove restraining forces
Increase the strength of a supporting force
Decrease the strength of a restraining force
Convert restraining force into a supporting force
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19. Implementing Change Successfully
Building Support for Change
Use group forces
Provide a rationale for change
Expectations are important
Encourage participation
Ensure economic and psychic rewards
Ensure employee security
Communicate and educate
Stimulate employee readiness
Work with the total system
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20. Understanding Organization Development
Organizational Development (OD)
Systematic application of behavior science knowledge at various organizational levels to bring about planned change
Helps managers recognize that organizations are systems with dynamic interpersonal relationships holding them together
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21. Understanding Organization Development
Variables in the OD Approach
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22. Understanding Organization Development
Foundations of OD
Systems organization
Understanding causality
Assumptions underlying organization development
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23. Organization Development Assumptions
Individuals
Want to grow and mature
Have much to offer that is not now being used
Desire the opportunity to contribute
Groups
Critical to organizational success
Powerful influences on individual behavior
Complex roles require skill development
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24. Organization Development Assumptions
Excessive controls, policies, and rules are detrimental
Conflict can be functional if properly channeled
Individual and organizational goals can be compatible
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25. Characteristics of Organizational Development
Humanistic values
Use of a change agent
Problem solving
Interventions at many levels
Appreciative inquiry
Contingency orientation
Summary and application
Integrates people, structure, technology, and environment
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26. The Organizational Development Process
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Benefits of OD
More widely dispersed improvement
Greater motivation
Increased productivity
Better quality of work
Higher job satisfaction
Improved teamwork
Better resolution of conflict
Commitment to objectives
Increased willingness to change
Reduced absences
Lower turnover
Creation of learning individuals and groups
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Limitations of OD
Major time requirements
Substantial expense
Delayed payoff period
Possible failure
Possible invasion of privacy
Possible psychological harm
Potential conformity
Emphasis on group processes, not performance
Possible conceptual ambiguity
Difficulty in evaluation
Cultural incompatibility
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