OB Week13 OrgChange

8/2/2019 OB Week13 OrgChange

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MGT-4110:

Organizational Behavior

Organizational Change

Professor Dr. AAhad M. Osman-Gani


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15-2

Forces for Change! Nature of the Workforce

Cultural diversity, aging population, inadequate skills Technology

Faster/cheaper mobile computers; Online music, DNA-geneticcode

Economic Shocks Mortgage meltdown, dot-com stocks, record low bank rates

Competition Global marketplace, M&A, E-commerce

Social Trends Baby boom retirements, Internet chats

World Politics Wars & conflicts, the opening of China & India


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15-3

Lewins Force Field Analysis Model Developed by Kurt Lewin

Driving forces

Push organizations toward change

External forces or leaders vision

Restraining forces

Resistance to change -- employee

behaviors that block the changeprocess

Driving

Forces

RestrainingForces


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15-4

DesiredConditions

CurrentConditions

BeforeChange

AfterChange

Force Field Analysis Model

DuringChange

DrivingForces

Restraining

Forces DrivingForces

RestrainingForces

DrivingForces

RestrainingForces


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15-5

Restraining Forces(Resistance to Change)Many forms of resistance

e.g., complaints, absenteeism, passive noncompliance

View resistance as a resource

1.Symptoms of deeper problems in the change process

2. A form of constructive conflict -- may improve decisions inthe change process

3. A form of voice helps procedural justice


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15-6

Why People Resist Change (6)1. Direct costs

Losing something of value due to change

2. Saving face

Accepting change acknowledges own imperfection,past wrongdoing

3. Fear of the unknown

Risk of personal loss

Concern about being unable to adjust


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15-7

Why People Resist Change (cond.)4. Breaking routines

Organizational unlearning is part of changeprocess

But past practices/habits are valued by employees

due to comfort, low cognitive effort

5. Incongruent organizational systems

Systems/structures reinforce status quo

Career, reward, power, communication systems

6. Incongruent team dynamics

Norms contrary to desired change


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15-8

Creating an Urgency for Change Inform employees about driving forces

Most difficult when organization is doing well

Customer-driven change

Adverse consequences for firm

Human element energizes employees

Sometimes need to create urgency to change

without external drivers Requires persuasive influence

Use positive vision rather than threats


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15-9

Minimizing Resistance to Change Highest priority and first strategy

for change

Improves urgency to change

Reduces uncertainty (fear ofunknown)

Problems -- time consuming andcostly

Communication

Learning

Involvement

Stress Mgt

Coercion

Negotiation


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15-10

Minimizing Resistance to Change Provides new knowledge/skills

Includes coaching and otherforms of learning

Helps break old routines andadopt new roles

Problems -- potentially timeconsuming and costly

Communication

Involvement

Stress Mgt

Coercion

Negotiation

Learning


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15-11

Minimizing Resistance to Change

Employees participate in changeprocess

Helps saving face and reducingfear of unknown

Includes task forces, future searchevents

Problems -- time-consuming,potential conflict

Learning

Involvement

Stress Mgt

Coercion

Negotiation

Involvement

Communication


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15-12

Minimizing Resistance to Change When communication, learning,

and involvement are not enoughto minimize stress

Potential benefits More motivation to change

Less fear of unknown

Fewer direct costs

Problems -- time-consuming,expensive, doesnt help everyone

Learning

Involvement

Coercion

Negotiation

Stress Mgt

Communication


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15-13


Influence by exchange -- reducesdirect costs

May be necessary when peopleclearly lose something and wont

otherwise support change Problems

Expensive

Gains compliance, not commitment

Learning

Involvement

Stress Mgt

Coercion

Communication

Negotiation


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15-14


When all else fails

Assertive influence

Radical form of unlearning

Problems Reduces trust

May create more subtle resistance

Encourage politics to protect jobCoercion

Learning

Involvement

Communication

Stress Mgt

Negotiation


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15-15

Refreezing the Desired Conditions Realigning organizational systems and

team dynamics with the desired changes

Alter rewards to reinforce new behaviors

Change career paths

Revise information systems


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Change Process: Lewin

Refreezing

Making newbehaviors

relativelypermanentand resistant

to futurechange

Changing

Themovement

from the oldway of doingthings to anew way

Unfreezing

The processby which

peoplebecome

aware of theneed for

change

Breaking fromold ways

Instituting thechange

Reinforcing &supporting new ways


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15-17

Change Agents Change agent -- anyone who possesses

enough knowledge and power to guideand facilitate the change effort

Engage in transformational leadership Develop the change vision

Communicate the vision

Act consistently with the vision

Build commitment to the vision


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15-18

Strategic Vision & Change Need a vision of the desired future state

Identifies critical success factors for change

Minimizes employee fear of the unknown

Clarifies role perceptions


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15-19

Diffusion of Change Begin change as pilot projects

Effective diffusion considers MARS model

Motivation pilot project is successful, reward

diffusion of pilot project Ability Train employees to adopt pilot project

Role perceptionsTranslate pilot project to newsituations

Situational factors Provide resources toimplement pilot project elsewhere


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15-20

Action Research Approach Action orientation and research orientation

Action to achieve the goal of change

Research testing application of concepts

Action research principles1. Open systems perspective

2. Highly participative process

3. Data-driven, problem-oriented process


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15-21

Formclient-

consultantrelations

Disengageconsultantsservices

Action Research Process

Diagnoseneed forchange

Introduceintervention

Evaluate/stabilizechange


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15-22

Appreciative Inquiry Approach Frames change around

positive and possiblefuture, rather thantraditional problem focus.

Application of positiveorganizational behavior


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15-23

Four-D Model of Appreciative Inquiry

Designing

Engaging indialogueabout what

should be

Dreaming

Formingideas aboutwhat might

be

Discovery

Discoveringthe best ofwhat is

Delivering

Developingobjectivesabout what

will be


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15-24

Large Group Interventions

Future search, open space, and otherinterventions that involve the whole system

Large group sessions

May last a few days

High involvement with minimal structure

Limitations of large group interventions

Limited opportunity to contribute

Risk that a few people will dominate Focus on common ground may hide differences

Generates high expectations about ideal future


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15-25

Parallel Learning Structure Approach Highly participative social structures

Members representative across the formalhierarchy

Sufficiently free from firms constraints

Develop solutions for organizationalchange which are then applied back into

the larger organization


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15-26

OrganizationParallelStructure

Parallel Learning Structures


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15-27

Cross-Cultural and Ethical Concerns Cross-Cultural Concerns

Linear and open conflict assumptions different fromvalues in some cultures

Ethical Concerns Privacy rights of individuals

Management power

Individuals self-esteem


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15-28

Organizations are About People!Take away my people, but leave my factories, and

soon grass will grow on the factory floors. Take

away my factories, but leave my people, and soon

we will have a new and better factory.

Andrew Carnegie (1835-1919)

Source: Library of Congress


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15-29

Thanks & Best wishes

for

Excellent Performance

in Final Exam!

OB Week13 OrgChange

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