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Managing Organizational Change

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Presentation on theme: "Managing Organizational Change"— Presentation transcript:

1 Managing Organizational Change
Chapter 17 Managing Organizational Change McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Learning Objectives Identify the three stages of the general organizational change model. Discuss the advantages and disadvantages of internal versus external change agents. Give examples of how individuals and organizations resist change. Summarize the components of the model of organizational change and development. Express the degree to which change interventions are effective. Describe the guidelines for managing change.

3 Change Pervasive Persistent Permanent Accelerating

4 Exhibit 17.1 A General Model of Organizational Change

5 Change Agents: Forms of Intervention
A change agent Brings a different perspective Challenges the status quo Success of the program Rests on the relationship between the change agent and key decision makers

6 Change Agents External Internal External-Internal

7 The more significant the change, the more intense the…
Resistance to Change The more significant the change, the more intense the… Fear Anxiety Resistance Resistance is often triggered by a change in routing, patterns, and habits

8 EXHIBIT 17.2 Range of Individual Resistance Behaviors

9 Reasons for Individual Resistance
Perceived loss of position, power, status, quality of life, authority Economic insecurity Alteration of social friendships and interactivity Fear of the unknown Failure to recognize the need for change Cognitive dissonance due to new people, processes, systems, technology, expectations Fear of a lack of competence Believing the proposed change is wrong or bad

10 Organizational Barriers to Change
Professional and functional orientation of a department, unit, or team Structural inertia Perceived threats to the power balance Previous change failure

11 Strategies for Overcoming Resistance
Give people and organizations a reason to change Get more people involved Increase communication Identify & guide champions/supporters of change Obtain upper-level management support Create a learning organization

12 Characteristics of a Learning Organization
Open discussions and accessibility to information Clear vision expressed at all levels Strong emphasis on interdependence, worth, and importance of each person and unit Clear goals and concepts of performance expectations Commitment to learning, improving, personal growth Concern for measurable results whenever possible Curiosity to try new methods and experiment Acceptance of failure

13 EXHIBIT 17.3 A Model for Organizational Change and Development

14 Forces for Change Economic forces Technological forces Social forces
Political forces External Forces Beyond the control of management Process problems Behavioral problems Internal Forces Generally within management’s control

15 Diagnosis of a Problem What is the problem versus the symptoms?
What must be changed to resolve the problem? What outcomes are expected from the change? How will those outcomes be measured?

16 Data Collection Process
Questionnaire data can be collected from large numbers of people Direct observations can be taken of actual workplace behavior Selected individuals in key positions can be interviewed Workshops can be arranged with groups to explore different perceptions of problems Documents and records of the organization can be examined for archival and current information

17 Choosing a Development Method
The development method depends on The nature of the problem The depth of the intended change

18 Approaches to Change Management
Common Approaches Structural Task & Technological People

19 Structural Approaches to Change
Management by Objectives (MBO) Objective setting Subordinate participation Feedback Evaluation Reengineering Efforts Streamlining Integrating Transforming

20 Task and Technological Approaches
Task changes job design changes and job enrichment Technological approaches changes in work flow Training is integral to the process These approaches focus on the work being performed

21 Human Capital Approaches
Team Building Ethics Training Mentorship Programs Introspection

22 Introspection Development Goals
Developing Objectivity Achieving life balance Increased sense of personal responsibility Learning Egolessness More tolerance for ambiguity and paradox Improving Self-confidence More creativity and intuition Action taking

23 TQM: A Multifaceted Approach
Key TQM components Goal Definition of quality Nature of the environment Role of management Role of employees Structural rationality Philosophy toward change

24 Appreciative Inquiry (AI)
A method of focusing on positive or potential opportunities An approach that asks questions and requires answers in an attempt to seize and improve upon an organization’s potential

25 EXHIBIT 17.4 4-D Framework for Appreciative Inquiry
A method of focusing on positive aspects or potential opportunities

26 Impediments and Limiting Conditions
Leadership Climate Formal Organization Organizational Culture Choice of a change method is tempered by the conditions that exist at the time

27 Implementing the Method
Implementation of a change method has two dimensions Timing: selection of the appropriate time at which to initiate the intervention Scope: selection of the appropriate scale

28 Evaluating Program Effectiveness
An expenditure of organizational resources In exchange for some desired result Bringing about change Obtaining data that measure the desired results Determining the trend of improvement over time Evaluating the program has two problems

29 Six steps of evaluative research
Determine the objectives of the program Describe the activities taken to achieve the objectives Measure the effects of the program Establish baseline points Control extraneous factors

30 How Effective are Change Interventions?
Critical Test of Change Intervention Whether it improves organization effectiveness Multimethod approaches are more successful than single-method ones

31 Significant Changes Occur When
All employees participate in goal setting, decision making, and job redesign Employee collaboration is developed through team building The organizational structure is reorganized to accommodate the new levels of participation and collaboration

32 Steps to Take When Managing Change
Management and all involved must have high and visible commitment to the effort People involved need advance information that tells them what is to happen, and why they are to do what they are to do The effort must be connected to other parts of the organization The effort must be directed by line managers and assisted by a change agent if necessary The effort is based on good diagnosis and is consistent with the conditions in the organization Management must remain committed to the effort through all its steps Evaluation is essential and must be more than asking people how they feel about the effort People must see the relationship between the effort and the organization’s mission and goals Any change agent must be clearly competent

33 Guidelines for Managing Change
Organizational Organizational change is a significant undertaking that managers should go about in a systematic way

34 In Review, Did We… Identify the three stages of the general organizational change model. Discuss the advantages and disadvantages of internal versus external change agents. Give examples of how individuals and organizations resist change. Summarize the components of the model of organizational change and development. Express the degree to which change interventions are effective. Describe the guidelines for managing change.


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