1. Leading Change in Organizations
Chapter 10
Leading Change in Organizations

2. Learning Objectives
Understand the different reasons for resisting change
Understand the different types of organizational change
Understand the psychological processes involved in making major changes
Understand the different ways that leaders can influence the culture of an organization

3. Learning Objectives
Understand the characteristics of an effective vision
Understand how to develop an appealing vision for the organization
Understand the characteristics of a learning organization
Understand how leaders can increase learning and innovation in organizations
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4. Reasons for Resistance to Change
Lack of trust
Belief that change is unnecessary
Belief that the change is not feasible
Economic threats
Relative high cost
Fear of personal failure
Loss of status and power
Threat to values and ideals
Resentment of interference
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5. Stages in the Change Process
Lewin’s Force-Field Model
Unfreezing
Changing
Refreezing
Stages in Reaction to Change
Denial
Anger
Mourning
Adaption
Response to Repeated Traumatic Change
Leaves people less resilient and more vulnerable
Leaves people inoculated and better prepared to deal with change
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6. Types of Organizational Change
Attitude-Centered Change
Role-Centered Change
Changes in Technology
Change in Competitive Strategy
Economic or Human Factor Changes
Generic Change Programs
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7. Systems Model for Organizational Change
Problems have multiple causes
Actions have multiple outcomes
Changes have delayed effects
Actions that appear to offer quick relief may make things worse in the long run
The best solution may offer no immediate benefits
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8. Influencing Organizational Change
Nature of Organizational Change
Primary Ways to Influence Culture
Attention
Reactions to crisis
Role Modeling
Allocation of rewards Criteria for selection and dismissal
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9. Influencing Organizational Change
Secondary Ways to Influence Culture
Design of systems and procedures
Design of organizational structure
Design of facilities
Stories, legends, and myths
Formal statements
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10. Developing a Vision Desirable Characteristics for a Vision
Elements of a Vision
Procedures for Developing a Vision
Involve key stakeholders
Identify strategic objectives with wide appeal
Identify relevant elements in the old ideology
Link the vision to core competencies
Evaluate the credibility and refine the vision
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11. Implementing Change Responsibility for Implementing Major Change
Support from top management
The Pace and Sequencing of Changes
Rapid versus gradual introduction of change
Change interdependent subunits simultaneously
Changes in the organizational structure to make it consistent with the strategy
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12. Guidelines for Political/Organizational Actions
Determine who can oppose or facilitate change
Build a broad coalition to support the change
Fill key positions with competent change agents
Use task forces to guide implementation
Make dramatic, symbolic changes that affect the work
Monitor the progress of change
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13. Guidelines for People-Oriented Actions
Create a sense of urgency about the need for change
Prepare people to adjust to change
Help people deal with the pain of change
Provide opportunities for early successes
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14. Guidelines for People-Oriented Actions
Keep people informed about the progress of change
Demonstrate continued commitment to the change
Empower people to implement the change
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15. Innovation and Organizational Learning
Internal Creation of New Knowledge
Internal departments
Pilot testing new ideas
External Acquisition of New Knowledge
Best practices
Hiring outsiders
External Consultants
Joint ventures
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16. Innovation and Organizational Learning
Knowledge Diffusion and Application
Information systems
Written or electronic documents
Special purpose conferences
Seminars and workshops
Learning Organizations
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17. Guidelines for Increasing Learning and Innovation
Encourage appreciation for flexibility and innovation
Encourage and facilitate learning by individuals and teams
Help people improve their mental model
Leverage learning from surprises and failures
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18. Guidelines for Increasing Learning and Innovation
Encourage and facilitate sharing of knowledge and ideas
Set innovation goals
Reward entrepreneurial behavior
© 2006 Prentice Hall Leadership in Organizations