1. Principles of Management 11e Kreitner
Chapter 16
Change, Conflict, and Negotiation
Instructor: IFTEKHAR AMIN CHOWDHURY

2. Organizational & Individual Perspectives
Types of Organizational Change
Anticipatory changes: Planned changes based on expected situations
Reactive changes: Changes made in response to unexpected situations
Incremental changes: Subsystem adjustments required to keep the organization on course
Strategic changes: Altering the overall shape or direction of the organization
Instructor: IFTEKHAR AMIN CHOWDHURY

3. Figure 15.1: Four Types of Organizational Change
Source: Copyright © 1990, by The Regents of the University of California. Reprinted from the CALIFORNIA MANAGEMENT REVIEW, Vol. 32, No. 2. By permission of The Regents. All rights reserved. This article is for personal viewing by individuals accessing this site. It is not to be copied, reproduced, or otherwise disseminated without written permission from the California Management Review. By viewing this document, you hereby agree to these terms. For permission or reprints, contact:
Instructor: IFTEKHAR AMIN CHOWDHURY

4. Individual Reactions to Change
How People Respond to Changes They Like
Three-stage process
Unrealistic optimism
Reality shock
Constructive direction
Instructor: IFTEKHAR AMIN CHOWDHURY

5. Figure 15.2: How People Tend to Respond to Changes They Like
Instructor: IFTEKHAR AMIN CHOWDHURY

6. Table 15.1: How to Help Individuals Deal with Change: A Contingency Approach
Instructor: IFTEKHAR AMIN CHOWDHURY

7. Why Do Employees Resist Change?
Surprise
Unannounced significant changes threaten employees’ sense of balance in the workplace.
Inertia
Employees have a desire to maintain a safe, secure, and predictable status quo.
Misunderstanding/Ignorance/Lack of Skills
Without introductory or remedial training, change may be perceived negatively.
Instructor: IFTEKHAR AMIN CHOWDHURY

8. Why Do Employees Resist Change? (cont’d)
Emotional Side Effects
Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.
Lack of Trust
Promises of improvement mean nothing if employees do not trust management.
Fear of Failure
Employees are intimidated by change and doubt their abilities to meet new challenges.
Instructor: IFTEKHAR AMIN CHOWDHURY

9. Why Do Employees Resist Change? (cont’d)
Personality Conflicts
Managers who are disliked by their employees are poor conduits for change.
Poor Timing
Other events can conspire to create resentment about a particular change.
Lack of Tact
Not showing sensitivity to feelings can create resistance to change.
Instructor: IFTEKHAR AMIN CHOWDHURY

10. Why Do Employees Resist Change? (cont’d)
Threat to Job Status/Security
Employees worry that change threatens their job or security.
Breakup of Work Group
Changes can tear apart established on-the-job social relationships.
Passive-Aggressive Organizational Culture
The more things change, the more they stay the same.
Competing Commitments
Change can disrupt employees in their pursuit of other goals.
Instructor: IFTEKHAR AMIN CHOWDHURY

11. Overcoming Resistance to Change
Strategies for Overcoming Resistance to Change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-optation
Explicit and implicit coercion
Instructor: IFTEKHAR AMIN CHOWDHURY

12. Table 15.2: Dealing with Resistance to Change
Source: From “Choosing Strategies for Change,” by John P. Kotter and Leonard A. Schlesinger, Harvard Business Review (March–April 1979, p. 111). Reprinted by permission of HBS Publishing.
Instructor: IFTEKHAR AMIN CHOWDHURY

13. Making Change Happen Two Approaches to Organizational Change
Organization Development (OD) is a planned change programs intended to help people and organizations function more effectively
Formal top-down approach
Applying behavioral science principles, methods, and theories to create and cope with change
Instructor: IFTEKHAR AMIN CHOWDHURY

14. Objectives of OD Deepen sense of organizational purpose.
Strengthen interpersonal trust.
Encourage problem solving rather than avoidance.
Develop a satisfying work experience.
Supplement formal authority with knowledge and skill-based authority.
Increase personal responsibility for planning and implementing.
Encourage willingness to change.
Instructor: IFTEKHAR AMIN CHOWDHURY

15. The OD Process Unfreezing, Change, Refreezing (Kurt Lewin)
Unfreezing: Neutralizing resistance by preparing people for change
Change: Introduction of the intervention
Refreezing: Systematically following a change program for lasting results
Instructor: IFTEKHAR AMIN CHOWDHURY

16. Figure 15.4: A General Model of OD
Instructor: IFTEKHAR AMIN CHOWDHURY

17. Figure 15.5: The 5P Checklist for All Change Agents
Instructor: IFTEKHAR AMIN CHOWDHURY

18. Managing Conflict Conflict Dealing with the Two Faces of Conflict
One person’s incompatible behaviors that make another person’s actions less effective
Dealing with the Two Faces of Conflict
Competitive conflict: Parties pursuing directly opposite (win-lose) goals
Cooperative conflict: A mutually reinforcing experience (win-win) that serves the best interests of both parties
Instructor: IFTEKHAR AMIN CHOWDHURY

19. Figure 15.6: A Competitive Versus Cooperative Conflict
Source: Reprinted from LEARNING TO MANAGE CONFLICT: GETTING PEOPLE TO WORK TOGETHER PRODUCTIVELY by Dean Tjosvold. Copyright © 1993 Dean Tjosvold. First published by Lexington Books. All rights reserved. All correspondence should be sent to Lexington Books, 4720 Boston Way, Lanham, MD
Instructor: IFTEKHAR AMIN CHOWDHURY

20. Managing Conflict (cont’d)
Conflict Trigger
Any factor that increases the chances of conflict
Conflict Triggers
Ambiguous or overlapping jurisdictions
Competition for scarce resources
Communication breakdowns
Time pressure
Unreasonable standards, rules, policies, or procedures
Personality clashes
Status differentials
Unrealized expectations
Instructor: IFTEKHAR AMIN CHOWDHURY

21. Managing Conflict (cont’d)
Resolving Conflict
Doing nothing is usually not a viable option.
Conflict Resolution Techniques
Problem solving
Superordinate goals
Compromise
Forcing
Smoothing
Instructor: IFTEKHAR AMIN CHOWDHURY

22. Negotiating Negotiation Common Types of Negotiation
A decision-making process among interdependent parties with different preferences
Common Types of Negotiation
Two-party negotiation (e.g., buyer and seller)
Third party negotiation (e.g., agents and arbitrators)
Instructor: IFTEKHAR AMIN CHOWDHURY

23. Negotiating (cont’d) Elements of Negotiation
Adopting a win-win attitude
Understanding that a mutually beneficial agreement addresses both parties’ interests
Knowing your BATNA (best alternative to a negotiated agreement)
Your “bottom line” for accepting or rejecting offers
Identifying the bargaining zone
Negotiation is useless if both parties involved have no common ground on which to maneuver during bargaining.
Instructor: IFTEKHAR AMIN CHOWDHURY

24. Figure 15.7: The Bargaining Zone for Negotiators
Instructor: IFTEKHAR AMIN CHOWDHURY

25. Negotiating (cont’d) Added Value Negotiating (AVN)
A practical five-step win-win process involving the development of multiple deals
Clarify subjective and objective interests; seek common ground.
Identify options and their marketplace values.
Design alternative deal packages that foster a creative agreement.
Select a mutually acceptable deal that is feasible for both parties.
Perfect the deal by hammering out unresolved details.
Instructor: IFTEKHAR AMIN CHOWDHURY

26. Terms to Understand Anticipatory changes Refreezing Reactive changes
Incremental changes
Strategic changes
Organization development (OD)
Unfreezing
Refreezing
Tempered radicals
Conflict
Conflict trigger
Negotiation
Bargaining zone
Added value negotiating
Instructor: IFTEKHAR AMIN CHOWDHURY