1. Copyright © 2002 by South-Western 18–1 Why Change Occurs: Forces for Change Organizational Change Technological forces Employee needs and values Social Forces Business and Economic Forces Organizational Forces

2. Copyright © 2002 by South-Western 18–2 Types of Change Reactive changeReactive change  Change that occurs when the forces driving change provide so much pressure that the organization must change. Proactive changeProactive change  Organizational change that occurs when managers conclude that change is desirable (as opposed to necessary).

3. Copyright © 2002 by South-Western 18–3 Types of Change Change and innovationChange and innovation  Change is the modification of an existing organizational practice.  Innovation occurs when the organization is the first or an early user of an idea. Technological changesTechnological changes  The introduction of new technologies into the workplace.

4. Copyright © 2002 by South-Western 18–4 First Tool Fire Electronic Revolution Wheel Industrial Revolution A.D. 20002,000,000 B.C.1,000,000 B.C. Uncontrollable Change No Change Rate of Technological Change The Rate of Change is Accelerating FIGURE 18–1

5. Copyright © 2002 by South-Western 18–5 Types of Change (cont’d) Structural/procedural changesStructural/procedural changes  Changes in organizational design and the methods to coordinate work People-oriented changesPeople-oriented changes  Improving employee skills, attitudes, motivation, and behaviors Technostructural changesTechnostructural changes  Concurrent changes in organization technology and organizational structure Sociotechnical changesSociotechnical changes  Changes in people and technology

6. Copyright © 2002 by South-Western 18–6 Reactions to Change Organizational inertiaOrganizational inertia  The tendency of organizations to maintain the status quo. How change gets thwarted:How change gets thwarted:  By control-oriented mechanistic management at the organizational level.  By organizational groups that will resist change because change threatens group’s norms.  By individuals with strong habits or fears that cause them to view change in less than positive ways.

7. Copyright © 2002 by South-Western 18–7 The Reasons Behind Our Reactions to Change Resistance to change is caused by:Resistance to change is caused by:  Misperceptions of value  Misunderstanding the change  Lack of trust in the initiators  Lack of agreement with the change  Personal feelings

8. Copyright © 2002 by South-Western 18–8 Psychological Ownership and Change Psychological theory of change (Dirks, et al)Psychological theory of change (Dirks, et al)  The strength of an individual’s psychological ownership for the target of change appears to influence their disposition to change.  Change is categorized as:  Self-initiated change versus imposed change  Evolutionary change versus revolutionary change  Additive versus subtractive change

9. Copyright © 2002 by South-Western 18–9 Developing Support for Change Educate and communicateEducate and communicate Participate and involveParticipate and involve Task support (facilitate)Task support (facilitate) Provide emotional supportProvide emotional support Provide incentivesProvide incentives Manipulate and co-optManipulate and co-opt CoerceCoerce

10. Copyright © 2002 by South-Western 18–10 The Special Role of Organizational Development Organizational development (OD)Organizational development (OD)  A process for diagnosing organizational problems by looking for incongruencies in environment, structures, processes, and people.  Interventions—actions that improve organizational effectiveness and/or the well-being of its members. Who practices OD?Who practices OD?  Change agents—individuals who are trained to facilitate organizational change.

11. Copyright © 2002 by South-Western 18–11 Common OD Activities TABLE 18–4a

12. Copyright © 2002 by South-Western 18–12 Common OD Activities (cont’d) TABLE 18–4b

13. Copyright © 2002 by South-Western 18–13 Planning and Managing the Change Process Stage 1 Change Identification Recognize Need for Change Identify Nature of Change Stage 2 Implementation Planning Selection of General Strategy Selection of Support Techniques Situational Diagnosis Stage 3 Implementation ChangingRefreezingUnfreezing Stage 4 Evaluation and Feedback Data Collection Data Evaluation Feedback FIGURE 18–2