1. © McGraw-Hill Companies, Inc., 1999 1 Chapter 16 Managing Organizational Change and Innovation – Book Review John M. Ivancevich Michael T. Matteson Slides Prepared by Bruce R. Barringer University of Central Florida

2. © McGraw-Hill Companies, Inc., 1999 2 Learning Objectives Slide 1 of 3 Define what is meant by organizational change management. Identify the major steps in undertaking organizational change efforts. Describe the two major types of change forces. Discuss the role of problem diagnosis in the organizational change management.

3. © McGraw-Hill Companies, Inc., 1999 3 Learning Objectives Slide 2 of 3 Identify a number of change methods and the relative depth of intervention each represents. Recognize the impediments and conditions that may limit change management effectiveness. Discuss the ethical implications of change management.

4. © McGraw-Hill Companies, Inc., 1999 4 Learning Objectives Slide 3 of 3 Understand how adopting innovation is a natural outcome in organizations that effectively manage change.

5. © McGraw-Hill Companies, Inc., 1999 5 Alternative Change Management Approaches Managing Change Through Power Managing Change Through Reason Managing Change Through Reeducation

6. © McGraw-Hill Companies, Inc., 1999 6 Learning Principles in Change Management Unfreezing old learning requires people who want to learn new ways to think and act. Movement to new learning requires training, demonstration, and empowerment. Refreezing the learned behavior occurs through the application of reinforcement and feedback.

7. © McGraw-Hill Companies, Inc., 1999 7 Change Agents: Forms of Intervention Slide 1 of 2 External Change Agents Internal Change Agents Are temporary employees of the organization, since they’re engaged only for the duration of the change process. Is an individual working for the organization who knows something about its problems.

8. © McGraw-Hill Companies, Inc., 1999 8 Change Agents: Forms of Intervention Slide 2 of 2 External-Internal Change Agents Some organizations used a combination external- internal change team to intervene and develop programs.

9. © McGraw-Hill Companies, Inc., 1999 9 Exhibit 16.1: A Model for the Management of Organizational Development Forces for Change External - Markets - Technology Internal - Behavior - Process Impediments and Limiting Conditions - Resistance to change - Leadership climate - Formal organization - Organizational culture Implementation of the Method - Timing - Scope - Experimentation Program Evaluation - Feedback - Adjustment - Revision - Reinforcement Performance Outcomes - Organizational - Group - Individual Diagnosis of the Problem - Information - Participation - Change agent Selection of Appropriate Method - Structural - Task and technological - Human asset Affect Focus of Leads to Followed by Provision for Feedback

10. © McGraw-Hill Companies, Inc., 1999 10 Forces for Change Slide 1 of 2 External Forces Economic ForcesTechnological Forces Social and Political Change

11. © McGraw-Hill Companies, Inc., 1999 11 Forces for Change Slide 2 of 2 Internal Forces Process Problems Behavioral Problems

12. © McGraw-Hill Companies, Inc., 1999 12 Diagnosis of a Problem Questions to Ask in Diagnosing a Problem 1. 3. 2. What is the problem as distinct from the symptoms of the problem? What must be changed to resolve the problem? What outcomes (objectives) are expected from the change, and how will those outcomes be measured?

13. © McGraw-Hill Companies, Inc., 1999 13 Approaches and Techniques That Facilitate Organizational Change Slide 1 of 5 Structural Approaches –Refer to managerial actions that attempt to improve effectiveness by introducing change through formal policies and procedures. Task and Technological Approaches –A task focus emphasizes job design change. –A technological approaches emphasizes change in the work flow.

14. © McGraw-Hill Companies, Inc., 1999 14 Approaches and Techniques That Facilitate Organizational Change Slide 2 of 5 Human Asset Approaches –Refers to a category of change methods designed to result in a far less specific and much broader outcome of helping individuals learn and grow professionally, and perhaps personally. Team Building –Refers to exercises designed to help work groups improve their performance.

15. © McGraw-Hill Companies, Inc., 1999 15 Approaches and Techniques that Facilitate Organizational Change Slide 3 of 5 The Managerial Grid –Refers to an approach to change based on a theory of leader behavior. According to the managerial grid approach, a balanced concern for production and people is the most effective leadership style. Ethics Training –Programs designed to (1) develop employee awareness of business ethics, and (2) focus on firm specific ethics issues.

16. © McGraw-Hill Companies, Inc., 1999 16 Approaches and Techniques that Facilitate Organizational Change Slide 4 of 5 Mentorship Programs –Mentoring programs help individuals develop by providing specific job instruction, disseminating organizational cultural norms and values, dispelling organizational myths, and generally transferring knowledge gained through years of being part of the organization. Introspection Development –Refers to any number of approaches to taking time to reflect on the impact of change.

17. © McGraw-Hill Companies, Inc., 1999 17 Approaches and Techniques that Facilitate Organizational Change Slide 5 of 5 Multifacted Approaches –Not all organizational change interventions fit neatly into one of the three categories of approaches. –Sometimes techniques from different categories may be used together in a multifaceted approach to development.

18. © McGraw-Hill Companies, Inc., 1999 18 Impediments and Limiting Conditions Sources of influence on the outcomes of management change programs Leadership Climate Formal Organization Organizational Culture

19. © McGraw-Hill Companies, Inc., 1999 19 Implementing the Method Timing –Refers to the selection of the appropriate time at which to initiate the intervention. –Timing depends upon a number of factors, particularly the organization’s operating cycle and the groundwork preceding the program Scope –Refers to the selection of the appropriate scale.

20. © McGraw-Hill Companies, Inc., 1999 20 Evaluating Program Effectiveness Controlling extraneous factors, preferably through use of a control groups Determining the objectives of the program Describing the activities undertaken to achieve the objectives Measuring the effects of the program Establishing baseline points against which changes can be compared Detecting unanticipated consequences