1. Chapter 18 Organizational Behavior: Foundations, Realities, & Challenges Nelson & Quick, 5th edition
Managing Change

2. Organizational Change
Unplanned Change – change that is imposed on the organization and is often unforeseen
Planned Change – change resulting from a deliberate decision to alter the organization
Managers must be
prepared to handle both 2

3. External Forces for Change
Workforce
Diversity
Globalization
Changing
Technology
Ethical
Behavior
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4. by South-Western, a division of Thomson Learning.
Globalization
Organizations must rethink
the most efficient ways to
Use resources
Disseminate/gather information
Develop people
Majority of
new workers
will be female
Workforce will
grow in diversity -
more Hispanics and
African-Americans
Workforce is aging -
less young workers, more
middle-aged
Mental
Change
Structural
Change
and
Workforce
Diversity
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5. by South-Western, a division of Thomson Learning.
Ethical
Behavior
Treatment
Ethical
Other Organizations
Customers
Environment
Society
Technological
Change
Changes
in work
relationships
Changes in
organizational
structure
Changing
Technology
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by South-Western, a division of Thomson Learning.
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6. Internal Forces for Change
Company
Crisis
Declining
Effectiveness
Changing
Employee
Expectations
Changing
Work Climate
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by South-Western, a division of Thomson Learning.
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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
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
Advantages
know past history, political system, and culture
must live with results of change so will move carefully
Disadvantages
may be associated with factions, accused of favoritism
may be too close to the situation to be objective 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
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values 11

12. Dealing with Resistance to Change
Communication
details
rationale
Participation in the process
ownership
commitment
Empathy and support 12

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
Unfreezing
Moving
Refreezing
Reducing forces
For status quo
Developing new
attitudes, values,
and behaviors
Reinforcing new
attitudes, values,
and behaviors
Unfreezing: the organization eliminates rewards for current behavior
Moving: the organization initiates new options and explains their rationale
Refreezing: organizational culture and formal reward systems encourage the new behaviors 16

15. 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 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
Selection of the OD method
Voluntary participation
Confidentiality
Potential for manipulation by the change agent 25