Ch16
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Transcript of Ch16
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Presentation Slidesto Accompany
Organizational Behavior 10th EditionDon Hellriegel and John W. Slocum, Jr.
Chapter 16—Guiding Organizational Change
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Chapter 16: Guiding Organizational Change
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Slide 16.1Learning Objectives for Guiding
Organizational Change
Identify pressures for change, two types of change programs, and how to perform an organizational diagnosis
Diagnose reasons for individual and organizational resistance to change and methods for overcoming it
Discuss methods for promoting change Describe ethical issues posed by
organizational change
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Chapter 16: Guiding Organizational Change
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Slide 16.2Pressures for Change
The globalization of markets
The spread of information technology and
computer networks
Changes in the nature of the workforce
employed by organizations
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Chapter 16: Guiding Organizational Change
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Slide 16.3Sources of Globalization Pressures
Economic recoveries of Germany and Japan after their defeat in World War II
Emergence of “newly industrialized” countries Dramatic shift from planned economies to
market economies that has occurred to a greater or lesser extent in former communist block countries
Emergence of new “power blocks” of international traders
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Chapter 16: Guiding Organizational Change
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Slide 16.4Positive and Negative effects of
Information Technology Positive effects
Changing almost everything about a company Increasing the value of invisible assets Democratizing a company Increasing the flexibility of work Allowing companies to unify their global operations and to
work a 24-hour day throughout the world
Negative effects Increased vulnerability to sabotage, espionage, and
vandalism Creation of new social divisions based on differences in
computer literacy
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Chapter 16: Guiding Organizational Change
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Slide 16.5Primary Changes in the Workforce
Increasing diversity in terms of gender and
ethnicity
Dual-career families are becoming the norm
Continued growth in the contingent workforce
Workforce is becoming better educated
Workforce is becoming less unionized
Changing values and expectations of the
workforce
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Chapter 16: Guiding Organizational Change
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Slide 16.6Approaches to Change
MEANS ECONOMICORGANIZATIONAL DEVELOPMENT
Purpose Profit Develop employees’ competencies
Leadership
Focus
Motivation
Top-down Participative Structure and
strategyCulture
Incentives lead performance
Incentives lag performance
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Chapter 16: Guiding Organizational Change
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Slide 16.7Initiatives Contributing to
Effective Change Management
Motivating Change
Creating a Vision
Developing Political Support
Managing the Transition
Sustaining Momentum
Effective Change Management
Source: Adapted with permission from Cummings, J. G., and Worley, C. G. OrganizationDevelopment and Change, 7th ed. Cincinnati: South-Western, 2001, 155.
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Chapter 16: Guiding Organizational Change
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Slide 16.8Essential Conditions for Carrying Out
Effective Change Programs
The organization’s members must be the key source of energy for change
Key members of the organization must recognize the need for change and be attracted by the potentially positive outcomes of the change program
A willingness to change norms and procedures must exist
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Chapter 16: Guiding Organizational Change
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Slide 16.9Diagnostic Model of Change
Culture TeamsReward Systems
Organizational Systems
Leadership
Organization Design
Individuals
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Chapter 16: Guiding Organizational Change
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Slide 16.10Employee Readiness for Change
Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the chances for success. Organizational Dynamics, Spring 1989, 37.
Perceived Personal Risk from Change
Le
vel o
f D
issa
tis
fac
tio
nw
ith
th
e C
urr
en
t S
itu
atio
n
Lo
wLow High
Hig
h
High readinessfor change
Moderate to indeterminate
readiness for change
Low readinessfor change
Moderate to indeterminate
readiness for change
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Chapter 16: Guiding Organizational Change
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Slide 16.11Sources of Resistance to Change
Individual Resistance* Perception* Personality* Habit* Threats to power and influence* Fear of the unknown* Economic reasons
Organizational Resistance* Organization design* Organizational culture* Resource limitations* Fixed investments* Interorganizational agreements
Resistance to Change
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Chapter 16: Guiding Organizational Change
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Slide 16.12Force Field Analysis
Source: Adapted from Zand, D. E. Force field analysis. In N. Nicholson (ed.), BlackwellEncyclopedic Dictionary of Organizational Behavior. Oxford, England: Blackwell, 1995, 181.
Current levelof groupperformance
Desired levelof groupperformance
Driving forces
High performance goals
New equipment
Competition
Employees with new skills
Desire for increased influence and rewards
Group norms for output
Familiarity withpresent equipment
Complacency
Need to learn new skills
Fear of reduced influence and rewards
Resisting forces
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Chapter 16: Guiding Organizational Change
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Slide 16.13Lewin’s Three-Step Change Process
Unfreezing Usually involves reducing those forces maintaining
the organization’s behavior at its present level
Moving Shifts the organization’s behaviors to a new level
Refreezing Stabilizes the organization at a new state of
equilibrium
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Chapter 16: Guiding Organizational Change
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Slide 16.14Components of Successful Methods
for Overcoming Resistance to Change Empathy and support
To aid in understanding how employees are experiencing change
Communication To reduce gossip and unfounded fears, thereby
reducing uncertainty about the potential consequences of change
Participation and involvement To increase employee ownership of and
commitment to the change
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Chapter 16: Guiding Organizational Change
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Slide 16.15The Team Performance Curve
Potentialteam
Realteam
High-performanceteam
Workinggroup
TEAM EFFECTIVENESSLow High
Lo
wH
igh
PE
RF
OR
MA
NC
E I
MP
AC
T
Source: Adapted from Katzenbach, J. R., and Smith, D. K. The Wisdom of Teams. Boston: Harvard Business School Press, 1993, 84.
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Chapter 16: Guiding Organizational Change
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Slide 16.16Team Building Activities
Contributing information concerning their perceptions of issues, problems, and working relationships
Analyzing the information and diagnosing work-related problems
Planning specific actions and assigning individuals to implement them
Evaluating their plans and progress in achieving those plans
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Chapter 16: Guiding Organizational Change
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Slide 16.17Issues Addressed by Successful
Cultural Change
Capitalize on dramatic opportunities Combine caution with optimism Understand resistance to cultural change Change many elements but maintain some
continuity Recognize the importance of implementation Modify socialization tactics Find and cultivate innovative leadership
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Chapter 16: Guiding Organizational Change
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Slide 16.18Ethical Issues in
Organizational Change
Selection of a change approach
Selection of a change target
Managerial responsibilities
Manipulation