1. Organizational Behavior Nelson & Quick
Managing Change
Chapter 18
Organizational Behavior Nelson & Quick
6th edition

2. Organizational Change
Planned Change - change resulting from a deliberate decision to alter the organization
Unplanned Change - change that is imposed on the organization and is often unforeseen
Managers must be
prepared to handle both
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3. External Forces for Change
Workforce
Diversity
Globalization
Technological
Change
Ethical
Behavior
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South-Western, a division
of Cengage Learning
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4. Globalization Workforce Diversity Organizations must rethink
the most efficient ways to
Use resources
Disseminate/gather information
Develop people
Globalization
Majority of
new workers
will be female
Structural Change
Mental Change
Workforce will
grow in diversity -
more Hispanics &
African-Americans
Workforce is aging -
less young workers, more
middle-aged
Workforce
Diversity
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South-Western, a division
of Cengage Learning
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5. Ethical Behavior Technological Change Other Organizations Ethical
Ethical
Behavior
Ethical
Treatment
Society
Customers
Changes
in work
relationships
Environment
Changes in
Technology
Changes in
organizational
structure
Technological
Change
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South-Western, a division
of Cengage Learning
All rights reserved 4

6. Internal Forces for Change
Company
Crisis
Declining
Effectiveness
Changing
Employee
Expectations
Changing
Work Climate
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Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved 6

7. Scope of Change
Incremental Change - change of a relatively small scope, such as making small improvements
Strategic Change - change of a larger scale, such as organizational restructuring
Transformational Change - change in which the organization moves to a radically different, and sometimes unknown, future state 7

8. The Change Agent’s Role
The Change Agent’s Role
Change Agent - the individual or group who undertakes the task of introducing and managing a change in an organization
Effective change leaders build relationships
Within the leadership team
Between the team and organizational members
Between the team and key environmental players 8

9. Internal Change Agents
May be associated with factions, accused of favoritism
May be too close to the situation to be objective
Disadvantages
Advantages
Know past history, political system, and culture
Must live with results of change so will move carefully 9

10. External Change Agents
Disadvantages
Limited knowledge of organization’s history
May be viewed with suspicion
Advantages
Outsider’s objective view
Impartiality
To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with 10

11. Resistance to Change Fear of the unknown Fear of loss Fear of failure
Fear of the unknown
Fear of loss
Fear of failure
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values
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12. Dealing with Resistance to Change
Communication
details
rationale
Participation in the process
ownership
commitment
Empathy and support
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13. Lewin’s Three Step Change Model
1. Unfreezing - involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo
2. Moving - new attitudes, values, and behaviors are substituted for old ones
3. Refreezing - involves the establishment of new attitudes, values, and behaviors as the new status quo 14

14. Applying Lewin’s Model to the Organization
Applying Lewin’s Model to the Organization
Unfreezing: the organization eliminates rewards for current behavior
Moving: the organization initiates new options and explains their rationale
Refreezing: organizational culture & formal reward systems encourage the new behaviors
Reducing forces
For status quo
Developing new
attitudes, values,
and behaviors
Reinforcing new
attitudes, values,
and behaviors 16

15. Organizational Development (OD)
Organizational Development (OD)
Organizational Development (OD) - a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness 17

16. Diagnosis & Needs Analysis
Diagnosis and
needs analysis
Intervention
Follow-up
Ask
What are the forces for change?
What are the forces preserving the status quo?
What are the most likely sources of resistance?
What are the goals to be accomplished by change? 18

17. Ethical Considerations in Organizational Development
Ethical Considerations in Organizational Development
Selection of the OD method
Voluntary participation
Confidentiality
Potential for manipulation by the change agent 25