1. Organizational Behavior (MGT-502)
Lecture-38

2. Summary of Lecture-37

3. Organizational Change

4. Change or Disappear

5. Forces For Change Internal Forces External Forces Process Behavioral
Economic Forces
Technology
Social and Political Change
External Forces
Internal Forces
Process
Behavioral
Organizational
Change

6. Types of Change
Planned
Unplanned
Evolutionary
Revolutionary 6

7. Today’s Topics

8. Rate of Technological Change
Change Rate
2,500,000 B.C.
1,000,000 B.C.
2,000 A.D.

9. Resistance To Change Individuals Organizations Habit Fear of unknown
Economic threat
New social relationships
Dislike of change agent
Dislike of implied criticism
Organizations
Threats to power
Resource limitations
Fixed investments

10. Driving Forces Changing technology Knowledge explosion
Rapid product obsolescence
Changing nature of workforce
Changing values

11. Overcoming Resistance
Coercion
Resist
Manipulation
Negotiation
Tolerate
Education
Participation
Accept
Facilitation
& Support
Support

12. Minimizing Resistance to Change
Communication
Minimizing
Resistance
to Change
Coercion
Training
Negotiation
Employee
Involvement
Stress
Management

13. Managing Organizational Change

14. The Three C’s of Change Customers take charge Competition intensifies
Change becomes constant

15. A continuous challenge as customer expectations change and can sometimes change faster than organizations can respond

16. The New World of Work
Peoples’ roles change - from controlled to empowered
Job preparation changes - from training to education
Focus of performance measures and compensation shifts - from activities to results
Advancement criteria change - from protective to productive
Managers change - from supervisors to coaches
Organization structures change - from hierarchical to flat
Executives change - from scorekeepers to leaders

17. Change Can Be…. Huge, catastrophic Small, incremental Predictable
Positive
Productive
A small modification
to your life
Taken in stride, managed
Small, incremental
Unpredictable
Negative
Unproductive
A devastating collapse of your world
Continuously stressful
Ask participants for more ideas on this, based on personal/professional experience.

18. Some External Forces for Change
Easier information transfer
Facilitates global structures
Requires new competencies and expectations
Facilitates telecommuting; new employment relationships
More emphasis on knowledge management
Information
Technology
Globalization
& Competition
Demography

19. Some External Forces for Change
Information
Technology
Global competition
Technology makes it easier to compete quickly
Results in restructuring, outsourcing, mergers
produces many employment changes
Globalization
& Competition
Demography

20. Some External Forces for Change
Information
Technology
More educated workforce
want involvement; interesting work
Younger generation
less intimidated by status
want a more balanced work life
Cultural changes
more individualism in traditionally collectivist countries
Globalization
& Competition
Demography

21. Areas Where Change Can Occur
Change Technology
Change the Organization’s Structure or Design
Change Job Responsibilities or tasks performed
Change People

22. Change Management Concept Model
Strategy
Organizational Structure
Business Models/Systems
Business Processes
People

23. Change Management Success Factors
People
Business Processes
Business Models/Systems
Organizational Structure
Strategy

24. Change Management Risk Alignment
People
Business Processes
Business Models/Systems
Organizational Structure
Strategy

25. The Change Agent’s Role
Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization
The change agent can be internal or external 8

26. The Change Agent Generators Implementers Adopters key change agents
demonstrators
patrons
defenders
Implementers
external
internal
Adopters
early adopters
maintainers
users

27. Internal Change Agents
Advantages Disadvantages
Better knowledge of the organization
Available more quickly
Lower out-of-pocket costs
A “known” quantity
More control & authority
May be too close to the problem
May be biased
May be viewed a part of the problem
Not available for previous job
Vested interest may reduce credibility

28. External Change Agents
Advantages Disadvantages
Less knowledge of the organization
Requires higher out-of-pocket costs
An unknown quantity
Longer start-up time
Hurts management’s image
More objective views
More diverse experience
May have more specific experience and knowledge

29. What Can Change Agents Change?
Structure
Change Agents can alter one or more of the key elements in a an organization's design.
Technology
Competitive factors or innovations within an industry often require change agents to introduce new equipment, tools, or operating methods.
Physical Settings
People
Change agents help individuals and groups within the organization work more effectively together.

30. The Change Process Two perspectives Forces of change
“Break it”- ‘Change it” - ‘Freeze it”
Continuous renewal
Forces of change
Internal
External

31. Organizational Change
Unfreezing
Changing
Refreezing
Lewin’s Three-Step Process

32. Let’s stop it here

33. Summary

34. Managing Organizational Change

35. The Change Agent’s Role
Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization
The change agent can be internal or external 8

36. Organizational Change
Unfreezing
Changing
Refreezing
Lewin’s Three-Step Process

37. Next….

38. Organizational Behavior (MGT-502)
Lecture-38