Change, Conflict, and Negotiation

Chapter Fifteen

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Chapter Objectives Identify and describe four types of organizational change

according to the Nadler-Tushman model. Explain how people tend to respond differently to changes they

like and those they dislike. List at least six reasons why employees resist change and discuss

what management can do about resistance to change. Describe how the unfreezing-change-refreezing metaphor applies

to organization development (OD). Describe tempered radicals and identify the 5Ps in the checklist

for grassroots change agents. Contrast competitive and cooperative conflict styles. Identify and describe five conflict resolution techniques. Identify and describe the elements of effective negotiation and

explain the advantage of added value negotiating (AVN).

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Change: Organizational & Individual PerspectivesTypes of Organizational Change

Anticipatory changes: Planned changes based on expected situations

Reactive changes: Changes made in response to unexpected situations

Incremental changes: Subsystem adjustments required to keep the organization on course

Strategic changes: Altering the overall shape or direction of the organization

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Organizational & Individual Perspectives

TuningAdaptationReorientationRe-Creation

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Individual Reactions to ChangeChange happens on an individual level, even

in the workplaceHow People Respond to Changes They Like

Three-stage process Unrealistic optimism Reality shock Constructive direction

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Individual Reactions to Change (cont’d)

On-the-Job changes generally are more feared than welcomed

How People Respond to Changes They Fear and Dislike

Stages Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction

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Some Reasons Employees Resist Change

SurpriseInertiaMisunderstanding/Ignorance/Lack of SkillsEmotional Side EffectsLack of Trust Fear of FailurePersonality Conflicts or Lack of TactPoor Timing

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Strategies for Overcoming Resistance to Change

Strategies for Overcoming Resistance to Change Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion

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Making Change HappenTwo Approaches to Organizational Change

Organization Development (OD) A planned change programs intended to help

people and organizations function more effectively Formal top-down approach

Grassroots change Unofficial and informal bottom-up approach

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Objectives of ODDeepen sense of organizational purpose.Strengthen interpersonal trust.Encourage problem solving rather than

avoidance.Develop a satisfying work experience.Supplement formal authority with knowledge

and skill-based authority.Increase personal responsibility for planning

and implementing.Encourage willingness to change.

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The OD ProcessUnfreezing, Change, Refreezing (Kurt Lewin)

Unfreezing: Neutralizing resistance by preparing people for change

Change: Introduction of the intervention Refreezing: Systematically following a change

program for lasting results

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Managing ConflictConflict

One person’s incompatible behaviors that make another person’s actions less effective

Dealing with the Two Faces of Conflict Competitive conflict: Parties pursuing directly

opposite (win-lose) goals Cooperative conflict: A mutually reinforcing

experience (win-win) that serves the best interests of both parties

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Managing Conflict (cont’d)

Conflict Trigger Any factor that increases the chances of conflict

(communication breakdown, time pressure, unreasonable standards, etc.)

Resolving Conflict Doing nothing is usually not a viable option. Conflict Resolution Techniques

Problem solving Superordinate goals Compromise Forcing Smoothing

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NegotiatingNegotiationCommon Types of NegotiationElements of Effective Negotiation (win-win,

BATNA, bargaining zone)Added Value Negotiating (AVN)

A practical five-step win-win process involving the development of multiple deals

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SummaryThe four types of change are tuning, adaptation, re-

orientation (frame bending), and re-creation (frame breaking).

People who like a change tend to go through three stages: unrealistic optimism, reality shock, and constructive direction. When someone fears or dislikes a change, a more complex process involving five stages tends to occur: getting off on the wrong track, laughing it off, experiencing growing self-doubt, buying in, and moving in a constructive direction.

Employees resist change for many different reasons, including (but not limited to) surprise, inertia, ignorance, lack of trust, fear of failure, passive-aggressive behavior, and competing commitments.

Organization development (OD) is a systematic approach to planned organizational change.

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Summary (cont’d)

Unofficial and informal grassroots change can be initiated by tempered radicals, who quietly follow their convictions when trying to change the dominant organizational culture.

Competitive conflict is characterized by a destructive cycle of opposing goals, mistrust and disbelief, and avoidance of discussion coupled with a win-lose attitude. In contrast, cooperative conflict involves a constructive cycle of cooperative goals, trust and reliance, and discussion coupled with a win-win attitude.

Conflict triggers can cause either constructive or destructive conflict.

Three basic elements of effective negotiations are a win-win attitude, a BATNA (best alternative to a negotiated agreement) to serve as a negotiating standard, and the calculation of a bargaining zone to identify overlapping interests. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Terms to UnderstandAnticipatory

changesReactive changesIncremental

changesStrategic changesOrganization

development (OD)Unfreezing

RefreezingTempered radicalsConflictConflict triggerNegotiationBargaining zoneAdded value

negotiating

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.17