1. Copyright © 2005 Prentice-Hall 18-1 Chapter 18 Managing Organizational Change Management: A Skills Approach, 2/e by Phillip L. Hunsaker

2. Copyright © 2005 Prentice-Hall 18-2 Learning Objectives Appreciate the Necessity of Managing Change Recognize What Causes Change Identify Targets for Change Plan and Implement Change Recognize and Overcome Resistance to Change Lead the Planned Change Process

3. Copyright © 2005 Prentice-Hall 18-3 Why is it Important to Adapt to Change? Individuals, teams, or organizations that do not adapt to change in timely ways are unlikely to survive.

4. Copyright © 2005 Prentice-Hall 18-4 Adapting to Change Individuals, teams and organizations that recognize the inevitability of change, learn to adapt to it, and attempt to manage it, will be the most successful.

5. Copyright © 2005 Prentice-Hall 18-5 What is Change? Coping process of moving from a unsatisfactory present state to a desired state

6. Copyright © 2005 Prentice-Hall 18-6 Reacting to Change Unplanned “Fire fighting”

7. Copyright © 2005 Prentice-Hall 18-7 Planned Change Results from deliberate attempts by managers to improve organizational operations

8. Copyright © 2005 Prentice-Hall 18-8 Unfreeze Change Refreeze Three Phases of Planned Change

9. Copyright © 2005 Prentice-Hall 18-9 UnfreezingUnfreezing Help people accept that change is needed because the existing situation is not adequate

10. Copyright © 2005 Prentice-Hall 18-10 ChangingChanging Involves rearranging of current work norms and relationships to meet new needs

11. Copyright © 2005 Prentice-Hall 18-11 RefreezingRefreezing Reinforces the changes made so that the new ways of behaving become stabilized

12. Copyright © 2005 Prentice-Hall 18-12 Managing the Planned Change Process Improving the organization’s ability to cope with unplanned changes that are thrust upon it Modifying employee’s attitudes and behaviors to make them more effective contributors to the organization’s goals

13. Copyright © 2005 Prentice-Hall 18-13 Steps in the Planned Change Process Recognize the need for change Diagnose and plan change Manage the transition Measure results Maintain change

14. Copyright © 2005 Prentice-Hall 18-14 Initiating the Planned Change Process Recognize the need for change Diagnose and plan change Formulate Goals Determine stakeholders’ needs Examine driving and restraining forces

15. Copyright © 2005 Prentice-Hall 18-15 Force-Field Analysis Process of analyzing the forces that drive change and the forces that restrain it

16. Copyright © 2005 Prentice-Hall 18-16 Driving Forces Factors that push toward the new, more desirable status quo

17. Copyright © 2005 Prentice-Hall 18-17 Restraining Forces Factors that exert pressure to continue past behaviors or to resist new actions

18. Copyright © 2005 Prentice-Hall 18-18 Force-Field Analysis Model Restraining Forces Driving Forces Quasi- Stationary Equilibrium

19. Copyright © 2005 Prentice-Hall 18-19 Managing the Planned Change Process Consider contingencies to determine the best interventions Manage the transition Measure results Maintain change

20. Copyright © 2005 Prentice-Hall 18-20 Targets for Organizational Change Strategy – Develop new visions, missions, strategic plans Structure – Add a new department or division, or consolidate two existing ones People – Replace a person or change knowledge, skills, attitudes, or behaviors Technology – upgrade a data processing system Management –Encourage participation by those involved in solution of problems

21. Copyright © 2005 Prentice-Hall 18-21 Reasons for Resistance to Change Selective Perception Lack of Information Fear of the Unknown Habit Resentment Toward the Initiator Sub-Optimization Structural Stability

22. Copyright © 2005 Prentice-Hall 18-22 Overcoming Resistance to Change Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation and Co-optation Coercion Promote Positive Attitudes Toward Change

23. Copyright © 2005 Prentice-Hall 18-23 Leading Organizational Change Establish a Sense of Urgency Form a Powerful Guiding Coalition Develop a Compelling Vision and Strategy Communicate Widely Empower Others to Act on the Vision Generate Short-term Wins Consolidate Gains and Create Greater Change Institutionalize Changes in the Organizational Culture