1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

2. Chapter Objectives Identify and describe four types of organizational change according to the Nadler-Tushman model. Explain how people tend to respond differently to changes they like and those they dislike. List at least six reasons why employees resist change and discuss what management can do about resistance to change. Describe how the unfreezing-change-refreezing metaphor applies to organization development (OD). Describe tempered radicals and identify the 5Ps in the checklist for grassroots change agents. Contrast competitive and cooperative conflict styles. Identify and describe five conflict resolution techniques. Identify and describe the elements of effective negotiation and explain the advantage of added value negotiating (AVN). © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

3. Change: 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 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

4. Organizational & Individual Perspectives Tuning Adaptation Reorientation Re-Creation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

5. Individual Reactions to Change Change happens on an individual level, even in the workplace How People Respond to Changes They Like Three-stage process Unrealistic optimism Reality shock Constructive direction © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

6. Individual Reactions to Change (contd) On-the-Job changes generally are more feared than welcomed How People Respond to Changes They Fear and Dislike Stages Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

7. Some Reasons Employees Resist Change Surprise Inertia Misunderstanding/Ignorance/Lack of Skills Emotional Side Effects Lack of Trust Fear of Failure Personality Conflicts or Lack of Tact Poor Timing © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

8. 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 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

9. Making Change Happen Two Approaches to Organizational Change Organization Development (OD) A planned change programs intended to help people and organizations function more effectively Formal top-down approach Grassroots change Unofficial and informal bottom-up approach © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

10. 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. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

11. 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 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

12. Managing Conflict Conflict One persons incompatible behaviors that make another persons 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 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

13. Managing Conflict (contd) Conflict Trigger Any factor that increases the chances of conflict (communication breakdown, time pressure, unreasonable standards, etc.) Resolving Conflict Doing nothing is usually not a viable option. Conflict Resolution Techniques Problem solving Superordinate goals Compromise Forcing Smoothing © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

14. Negotiating Negotiation Common Types of Negotiation Elements of Effective Negotiation (win-win, BATNA, bargaining zone) Added Value Negotiating (AVN) A practical five-step win-win process involving the development of multiple deals © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

15. Summary The four types of change are tuning, adaptation, re-orientation (frame bending), and re-creation (frame breaking). People who like a change tend to go through three stages: unrealistic optimism, reality shock, and constructive direction. When someone fears or dislikes a change, a more complex process involving five stages tends to occur: getting off on the wrong track, laughing it off, experiencing growing self-doubt, buying in, and moving in a constructive direction. Employees resist change for many different reasons, including (but not limited to) surprise, inertia, ignorance, lack of trust, fear of failure, passive-aggressive behavior, and competing commitments. Organization development (OD) is a systematic approach to planned organizational change. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

16. Summary (contd) Unofficial and informal grassroots change can be initiated by tempered radicals, who quietly follow their convictions when trying to change the dominant organizational culture. Competitive conflict is characterized by a destructive cycle of opposing goals, mistrust and disbelief, and avoidance of discussion coupled with a win-lose attitude. In contrast, cooperative conflict involves a constructive cycle of cooperative goals, trust and reliance, and discussion coupled with a win-win attitude. Conflict triggers can cause either constructive or destructive conflict. Three basic elements of effective negotiations are a win-win attitude, a BATNA (best alternative to a negotiated agreement) to serve as a negotiating standard, and the calculation of a bargaining zone to identify overlapping interests. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

17. Terms to Understand Anticipatory changes Reactive changes Incremental changes Strategic changes Organization development (OD) Unfreezing Refreezing Tempered radicals Conflict Conflict trigger Negotiation Bargaining zone Added value negotiating © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17