Managing Change for Organizational Development
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Transcript of Managing Change for Organizational Development
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Managing Change for
Organizational Development
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External and Internal Forces for Change
External Changing consumer
needs and wants
New governmental laws
Changing technology
Economic changes
InternalNew organizational
strategy
Change in composition
of workforce New equipment
Changing employee
attitudes
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What Is Change?
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities Managing change is an integral part
of every managers job.
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The Change Process
The Calm Waters Metaphor Lewins description of the change process as a break in the
organizations equilibrium state
Unfreezing the status quo
Changingto a new state
Refreezingto make the change permanent
White-Water Rapids Metaphor
The lack of environmental stability and predictability requires
that managers and organizations continually adapt (manage
change actively) to survive.
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The Change Process
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Organizational Change and Change Agents
Organizational Change
Any alterations in the people, structure, or technology of an
organization
Change Agents
Persons who act as catalysts and assume the responsibility for
managing the change process.
Types of Change Agents
Managers: internal entrepreneurs
Nonmanagers: change specialists
Outside consultants: change implementation experts
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Types of Change
Structure Changing an organizations structural components or its structural
design
Technology
Adopting new equipment, tools, or operating methods that displaceold skills and require new ones
Automation: replacing certain tasks done by people with machines
Computerization
People
Changing attitudes, expectations, perceptions, and behaviors of theworkforce
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Organizational Development
Organizational Development (OD) A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
OD Values
Respect for people
Trust and support
Power equalization
Confrontation
Participation
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Six OD Techniques
1. Sensitivity Training
Training groups (T-groups) that seek to change behavior through
unstructured group interaction
Provides increased awareness of others and self
Increases empathy with others, listening skills, openness, and
tolerance for others2. Survey Feedback Approach
The use of questionnaires to identify discrepancies among member
perceptions; discussion follows and remedies are suggested
3. Process Consultation (PC)
A consultant gives a client insights into what is going on around
the client, within the client, and between the client and other
people; identifies processes that need improvement.
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Six OD Techniques (Continued)
4. Team Building
High interaction among team members to increase trust andopenness
5. Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other6. Appreciative Inquiry
Seeks to identify the unique qualities and special strengths ofan organization, which can then be built on to improve
performance
Discovery: Recalling the strengths of the organization
Dreaming: Speculation on the future of the organization
Design: Finding a common vision
Destiny: Deciding how to fulfill the dream
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Popular OD Techniques
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Managing Resistance to Change
Why People Resist Change The ambiguity and uncertainty that change introduces
The comfort of old habits
A concern over personal loss of status, money, authority,
friendships, and personal convenience
The perception that change is incompatible with the goals and
interest of the organization
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Resistance to Change
Resistance to change appears to be a natural and
positive state
Forms of Resistance to Change:
Overt and Immediate
Voicing complaints, engaging in job actions
Implicit and Deferred
Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism
Deferred resistance clouds the link between source and
reaction
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Sources of Resistance to Change
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Tactics for Overcoming Resistance to Change
Education and Communication
Show those effected the logic behind the change
Participation
Participation in the decision process lessens resistance
Building Support and Commitment
Counseling, therapy, or new-skills training Implementing Change Fairly
Be consistent and procedurally fair
Manipulation and Cooptation
Spinning the message to gain cooperation
Selecting people who accept change
Hire people who enjoy change in the first place
Coercion
Direct threats and force
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Reducing Resistance to Change
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Issues in Managing Change (contd)
Changing Organizational Cultures
Cultures are naturally resistant to change.
Conditions that facilitate cultural change:
The occurrence of a dramatic crisis
Leadership changing hands
A young, flexible, and small organization
A weak organizational culture
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Strategies for Managing Cultural Change
Set the tone through management behavior; top managers,
particularly, need to be positive role models.
Create new stories, symbols, and rituals to replace thosecurrently in use.
Select, promote, and support employees who adopt the newvalues.
Redesign socialization processes to align with the new values.
To encourage acceptance of the new values, change the rewardsystem.
Replace unwritten norms with clearly specified expectations.
Shake up current subcultures through job transfers, jobrotation, and/or terminations.
Work to get consensus through employee participation andcreating a climate with a high level of trust.
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Issues in Managing Change (contd)
Handling Employee Stress
Stress
The adverse reaction people have to excessive pressure placed on
them from extraordinary demands, constraints, or opportunities.
Functional Stress
Stress that has a positive effect on performance.
How Potential Stress Becomes Actual Stress
When there is uncertainty over the outcome.
When the outcome is important.
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Symptoms of Stress
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Issues in Managing Change (contd)
Reducing Stress
Engage in proper employee selection
Use realistic job interviews for reduce ambiguity
Improve organizational communications Develop a performance planning program
Use job redesign
Provide a counseling program
Offer time planning management assistance
Sponsor wellness programs
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Issues in Managing Change (contd)
Making Change Happen Successfully
Embrace changebecome a change-capable organization.
Create a simple, compelling message explaining why change is
necessary. Communicate constantly and honestly.
Foster as much employee participation as possibleget all
employees committed.
Encourage employees to be flexible. Remove those who resist and cannot be changed.
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Characteristics of Change-Capable Organizations
Link the present and
the future.
Make learning a way
of life.
Actively support and
encourage day-to-day
improvements and
changes.
Ensure diverse teams.
Encourage mavericks.
Shelter breakthroughs.
Integrate technology.
Build and deepen trust.
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Stimulating Innovation
Creativity
The ability to combine ideas in a unique way or to make an
unusual association.
Innovation
Turning the outcomes of the creative process into useful
products, services, or work methods.
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Worlds Most Innovative Companies
Source: The Worlds Most Innovative Companies by Region, BusinessWeek, BusinessWeekOnline, April 15, 2008, businessweek.com
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Systems View of Innovation
Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, Toward aTheory of Organizational Creativity, Academy of Management Review, April 1993, p.
309.
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Innovation
Variables
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Stimulating Innovation
Structural Variables
Adopt an organic structure
Make available plentiful resources
Engage in frequent inter-unit communication
Minimize extreme time pressures on creative activities
Provide explicit support for creativity
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Stimulating Innovation (contd.)
Cultural Variables
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an open-system focus
Provide positive feedback
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Stimulating Innovation (contd.)
Human Resource Variables
Actively promote training and development to keep employees
skills current.
Offer high job security to encourage risk taking.
Encourage individual to be champions of change. Idea Champion
Dynamic self-confident leaders who actively and
enthusiastically inspire support for new ideas, build support,
overcome resistance, and ensure that innovations are
implemented.
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Forces for Change
Nature of the Workforce
Greater diversity
Technology
Faster, cheaper, more mobile
Economic Shocks
Mortgage meltdown
Competition
Global marketplace
Social Trends
Baby boom retirements World Politics
Iraq War and the opening of China
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Planned Change
Change
Making things different
Planned Change
Activities that are proactive and purposeful: an intentional,
goal-oriented activity
Goals of planned change
Improving the ability of the organization to adapt to changes in
its environment
Changing employee behavior
Change Agents
Persons who act as catalysts and assume the responsibility
for managing change activities
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The Politics of Change
Impetus for change is likely to come
from outside change agents, newemployees, or managers outside themain power structure.
Internal change agents are most
threatened by their loss of status inthe organization.
Long-time power holders tend toimplement incremental but not radical
change. The outcomes of power struggles in
the organization will determine thespeed and quality of change.
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Lewins Three-Step Change Model
Unfreezing
Change efforts to overcome the pressures of both individual
resistance and group conformity
Refreezing
Stabilizing a change intervention by balancing driving and
restraining forces
Unfreeze Move Refreeze
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Lewin: Unfreezing the Status Quo
Driving Forces
Forces that direct behavior away from the status quo
Restraining Forces
Forces that hinder movement from the existing equilibrium
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Kotters Eight-Step Plan
Builds from Lewins Model
To implement change:
1. Establish a sense of urgency
2. Form a coalition
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term wins
7. Consolidate, reassess, and adjust
8. Reinforce the changes
Unfreezing
Movement
Refreezing
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Action Research
A change process based on systematic collection of data
and then selection of a change action based on what theanalyzed data indicates
Process steps:
1. Diagnosis
2. Analysis3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather than solution-centered
Heavy employee involvement reduces resistance to change
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Creating a Culture for Change: Innovation
1. Stimulating a Culture of Innovation
Innovation: a new idea applied to initiating or improving
a product, process, or service
Sources of Innovation:
Structural variables: organic structures
Long-tenured management
Slack resources
Interunit communication
Idea Champions: Individuals who actively promote the
innovation
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Creating a Culture for Change: Learning
2. Learning Organization
An organization that has developed the continuous
capacity to adapt and change
Characteristics
Holds a shared vision
Discards old ways of thinking
Views organization as system of relationships
Communicates openly
Works together to achieve shared vision
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Creating a Learning Organization
Overcomes traditional organization problems:
Fragmentation
Competition
Reactiveness
Manage Learning by:
Establishing a strategy
Redesigning the organizations structure
Flatten structure and increase cross-functional activities
Reshaping the organizations culture
Reward risk-taking and intelligent mistakes
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Work Stress
Stress
A dynamic condition in which an individual is confrontedwith an opportunity, constraint, or demand related to what heor she desires and for which the outcome is perceived to be
both uncertain and important
Types of Stress
Challenge Stressors
Stress associated with workload, pressure to complete tasks,and time urgency
Hindrance Stressors
Stress that keeps you from reaching your goals, such as redtape
Cause greater harm than challenge stressors
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Demands-Resources Model of Stress
Demands
Responsibilities, pressures, obligations, and uncertainties in
the workplace
Resources
Things within an individuals control that can be used to
resolve demands
Adequate resources help reduce the stressful nature of
demands
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A Model of Stress
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Potential Sources of Stress
Environmental Factors
Economic uncertainties of the business cycle
Political uncertainties of political systems
Technological uncertainties of technical innovations
Organizational Factors
Task demands related to the job
Role demands of functioning in an organization
Interpersonal demands created by other employees
Personal Factors Family and personal relationships
Economic problems from exceeding earning capacity
Personality problems arising from basic disposition
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Consequences of Stress
Stressors are additive: high levels of stress can lead to
the following symptoms
Physiological
Blood pressure, headaches, stroke
Psychological
Dissatisfaction, tension, anxiety, irritability, boredom, and
procrastination
Greatest when roles are unclear in the presence of conflicting
demands
Behavioral Changes in job behaviors, increased smoking or drinking,
different eating habits, rapid speech, fidgeting, sleep disorders
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Not All Stress Is Bad
Some level of stress can increase productivity
Too little or too much stress will reduce performance
This model is not empirically supported
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Managing Stress
Individual Approaches
Implementing time management
Increasing physical exercise
Relaxation training
Expanding social support network
Organizational Approaches
Improved personnel selection and job placement
Training
Use of realistic goal setting
Redesigning of jobs
Increased employee involvement Improved organizational communication
Offering employee sabbaticals
Establishment of corporate wellness programs
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Global Implications
Organizational Change
Culture varies peoples belief in the possibility of change
Time orientation will affect implementation of change
Reliance on tradition can increase resistance to change
Power distance can modify implementation methods
Idea champions act differently in different cultures
Stress
Job conditions that cause stress vary across cultures
Stress itself is bad for everyone
Having friends and family can reduce stress
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Summary and Managerial Implications
Organizations and the individuals within them must
undergo dynamic change
Managers are change agents and modifiers of
organizational culture
Stress can be good or bad for employees
Despite possible improvements in job performance
caused by stress, such improvements come at the cost
of increased job dissatisfaction