1. Chapter 22
Managing
Change

2. Objectives Describe the nature of change
Explain the essential components in the change process
Understand the leader’s role in the change process
Define resistance to change and its function
List tactics for dealing with resistance to change
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3. Basic Requirements for Successful Change Efforts
Top management support
Critical mass
Trust
New psychological contracts
New learned behaviors
Organizational learning
Institutionalization of innovations
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4. Types of Change Incremental (first-order) Transformative
Linear
Continuous
Targeted at fixing /
modifying problems /
procedures
Transformative
(second-order, gamma)
Radical
Discontinuous
Multidimensional
Multilevel
Modifies the fundamental structure, systems, orientation and strategies
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5. Critical Mass - Defined
Critical mass is defined as the smallest
number of people and / or groups who
must be committed to a change for it to
occur
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6. Lewin’s Change Process
Unfreezing
Stress, tension, strong felt
need for change
Moving
Give up old ways of behaving,
Test new behaviors, attitudes
and values
Refreezing
Reinforce, internalize,
institutionalize new behavior
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7. Change Is a Process - not an Event or Managerial Edict
Technical
Solution
Process
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8. Steps in the Change Process obtaining participation
Determining the need
for change
Forming a
guiding coalition
Evaluating the
change
Developing a
shared vision
Implementing the
change
Creating a
tentative plan
Communicating the
change
Establishing an
implementation plan
Analyzing potential
resistance and
obtaining participation
Organizational Behavior: An Experiential Approach 8/E
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9. When Are Conditions Favorable for Change?
C=(D X S X P) > X
Where:
C = change
D = dissatisfaction with status quo
S = an identifiable and desired end state
P = practical plan for achieving the desired end state
X = the cost of change to the organization
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10. Force Field Analysis - Defined
Force field analysis assigns pressures for
change and resistance to change to opposite
sides of an equilibrium state.
Forces against
change
Forces for change
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11. Creative Tension - Defined
Creative tension results from perceiving the
gap between the ideal situation and an
honest appraisal of its current reality
Ideal situation
Current reality
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12. Creating a Sense of Urgency
Create a crisis by allowing a loss/error to blow up
Eliminate obvious examples of excess
Set targets so high they can’t be reached by doing business as usual
Share more info on customer satisfaction and financial performance
Insist employees talk with unsatisfied customers, suppliers, shareholders
Stop “happy talk” and be honest
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13. Change Agents - Defined
Change agents are people who act as catalysts and assume the responsibility for managing change activities
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14. Role of Transformational Leaders
Envision
Articulate a clear and credible vision
Set new and difficult standards for performance
Generate pride in past accomplishments and enthusiasm for new strategy
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15. …Role of Transformational Leaders
Energize
Personally demonstrate excitement for changes
Model the behaviors that are expected of others
Communicate examples of early successes to mobilize energy for change
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16. …Role of Transformational Leaders
Enable
Provide resources necessary for undertaking significant change
Use rewards to reinforce new behaviors
Build an effective top-management team to manage the new organization
Develop management
practices to support
the change process
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17. Resistance to Change - Defined
Resistance is a natural reaction to change
and part of the process of adaptation
Ensures that plans for change and their
ultimate consequences are carefully thought through
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18. Handling Resistance to Change
View it as something else that must be
managed by:
Understanding the source
Listening carefully to concern
Refraining from seeing resisters as adversaries
Using the appropriate tactic in response
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19. Sources of Resistance Inadequate change goal Inadequate process
Personal resistance
Political resistance
Systemic resistance
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20. Tactics for Dealing with Resistance
Empathy
Education and communication
Participation and involvement
Facilitation and support
Co-optation
Negotiation and agreement
Manipulation
Coercion
Commitment
Compliance
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21. Organizational Development (OD) - Defined
Organization development (OD) is a specialized
system-wide process of data collection, diagnosis,
action, planning, intervention, and evaluation
aimed at:
enhancing congruence between organizational structure, process, strategy, people, and culture, 
developing new and creative organizational solutions, and
(3) developing the organization’s self-renewing capacity.
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22. Cultural Values Underlying OD
Respect for people
Trust and support
Equality and power sharing
Candor and confrontation
Participation
Collaboration
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23. When Does Culture Matter with Change?
OD values are not reflective of all cultures.
Cultures vary in terms of their comfort with change, beliefs about how change occurs, and how it should be implemented.
Cultural values affect the change implementation process
Change interventions that work in one country may not succeed elsewhere. Corporate-wide changes have to be contextualized
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