1. Change, Conflict, and Negotiation
Chapter 16 (Lecture Outline Presentation)
Change, Conflict, and Negotiation

2. Chapter Objectives
Identify and describe four types of organizational change according to the Nadler-Tushman model.
Explain how people tend to respond differently to changes they like and those they dislike.
List a least six reasons why employees resist changes and discuss what management can do about resistance to change.
Describe how the unfreezing-change-refreezing analogy applies to organization development (OD).
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3. Chapter Objectives (cont’d)
Describe tempered radicals and identify the 5Ps in the checklist for change agents.
Contrast competitive and cooperative conflict styles.
Identify and describe five conflict resolution techniques.
Identify and describe the elements of effective negotiation and explain the advantage of added value negotiating (AVN).
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4. Change: Organizational Perspectives
Types of Organizational Change
Anticipatory changes: planned changes based on expected situations.
Reactive changes: changes made in response to unexpected situations.
Incremental changes: subsystem adjustments required to keep the organization on course.
Strategic changes: altering the overall shape or direction of the organization.
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5. Change: Organizational Perspectives (cont’d)
Tuning
The most common, least intense, and least risky type of change.
Also known as preventive maintenance and kaizen (continuous improvement).
Key is to actively anticipate and avoid problems rather than waiting for something to go wrong.
Adaptation
Incremental changes that are in reaction to external problems, events, or pressures.
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6. Change: Organizational Perspectives (cont’d)
Reorientation
Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected.
Also called “frame bending” (Nadler and Tushman).
Re-Creation
Intense and risky decisive change that reinvents the organization.
Also called “frame breaking” (Nadler and Tushman).
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7. Individual Reactions to Change
How People Respond to Changes They Like
Three-stage process
Unrealistic optimism
Reality shock
Constructive direction
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8. Individual Reactions to Change (cont’d)
How People Respond to Changes They Fear and Dislike
Stages
Getting off on the wrong track
Laughing it off
Growing self-doubt
Buying in
Constructive direction
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9. Why Do Employees Resist Change?
Surprise
Unannounced significant changes threaten employees’ sense of balance in the workplace.
Inertia
Employees have a desire to maintain a safe, secure, and predictable status quo.
Misunderstanding and lack of skills
Without introductory or remedial training, change may be perceived negatively.
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10. Why Do Employees Resist Change? (cont’d)
Emotional Side Effects
Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.
Lack of Trust
Promises of improvement mean nothing if employees do not trust management.
Fear of Failure
Employees are intimidated by change and doubt their abilities to meet new challenges.
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11. Why Do Employees Resist Change? (cont’d)
Personality Conflicts
Managers who are disliked by their managers are poor conduits for change.
Poor Timing
Other events can conspire to create resentment about a particular change.
Lack of Tact
No showing sensitivity to feelings can create resistance to change.
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12. Why Do Employees Resist Change? (cont’d)
Threat to Job Status/Security
Employees worry that any change may threaten their job or security.
Breakup of Work Group
Changes can tear apart established on-the-job social relationships.
Competing Commitments
Change can disrupt employees in their pursuit of other goals.
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13. Overcoming Resistance to Change
Strategies for Overcoming Resistance to Change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-optation
Explicit and implicit coercion
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14. Making Change Happen Two Approaches to Organization Change
Organization Development (OD)
Formal top-down approach
Grassroots Change
An unofficial and informal bottom-up approach
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15. Planned Change Through Organization Development (OD)
Planned change programs intended to help people and organizations function more effectively.
Applying behavioral science principles, methods, and theories to create and cope with change.
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16. Planned Change Through Organization Development (OD) (cont’d)
Objectives of OD
Deepen sense of organizational purpose.
Strengthen interpersonal trust.
Encourage problem solving rather than avoidance.
Develop a satisfying work experience.
Supplement formal authority with knowledge and skill-based authority.
Increase personal responsibility for planning and implementing.
Encourage willingness to change.
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17. Planned Change Through Organization Development (OD) (cont’d)
The OD Process
Unfreezing, change, refreezing (Kurt Lewin)
Unfreezing: neutralizing resistance by preparing people for change.
Refreezing: systematically following a change program for lasting results.
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18. Unofficial and Informal Grassroots Change
Tempered Radicals
People who quietly try to change the dominant organizational culture in line with their convictions.
Guidelines for tempered radicals
Think small for big results.
Be authentic.
Translate.
Don’t go it alone.
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19. Managing Conflict Dealing with the Two Faces of Conflict
Competitive conflict: parties are pursuing directly opposite (win-lose) goals.
Cooperative conflict: a mutually reinforcing experience (win-win) that serves the best interests of both parties.
Conflict Triggers
Conflict trigger: any factor that increases the chances of conflict.
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20. Managing Conflict (cont’d)
Types of Conflict Triggers (cont’d)
Ambiguous or overlapping jurisdictions.
Competition for scarce resources.
Communication breakdowns.
Time pressure.
Unreasonable standards, rule, policies, or procedures.
Personality clashes.
Status differentials.
Unrealized expectations.
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21. Managing Conflict (cont’d)
Resolving Conflict: Conflict Resolution Techniques
Problem solving
Superordinate goals
Compromise
Forcing
Smoothing
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22. Negotiating Negotiation Common Types of Negotiation
A decision-making process among interdependent parties with different preferences.
Common Types of Negotiation
Two-party negotiation (e.g., buyer and seller)
Third party negotiation (e.g., agents and arbitrators)
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23. Negotiating (cont’d) Elements of Negotiation
Adopting a win-win attitude
Understanding that mutual beneficial agreement addresses the both parties’ interests.
Knowing your BTNA (best alternative to a negotiated agreement)
Your “bottom line” for accepting or rejecting offers.
Identifying the Bargaining Zone
Negotiation is useless if both parties involved have no common ground on which to maneuver during bargaining.
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24. Negotiating (cont’d) Added Value Negotiating (AVN)
A practical five-step win-win process involving development of multiple deals.
Clarify subjective and objective interests; seeking common ground.
Identify options and their marketplace values.
Design alternative deal packages that foster a creative agreement.
Select a mutually acceptable deal that is most feasible for both parties.
Perfect the deal by hammering out unresolved details.
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