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Chapter 18 Organizational Change and Development

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Title: Chapter 18 Organizational Change and Development


1
Chapter 18Organizational Changeand Development
2
Learning Goals
  • Discuss the pressures on managers to change their
    organizations
  • Describe different types of organizational change
  • Explain the phases and targets of planned
    organizational change

3
Learning Goals (Cont.)
  • List some reasons for resistance to change in
    organizations
  • Describe the organizational development
    techniques managers can use to change their
    organizations
  • Understand some international aspects of
    organizational change and development

4
Chapter Overview
  • Introduction
  • Forces For and Against Change
  • Unplanned and Planned Organizational Change
  • Targets of Organizational Change
  • Planned Organizational Change
  • Resistance to Change

5
Chapter Overview (Cont.)
  • Organizational Development
  • International Aspects of Organizational Change
    and Development
  • Ethical Issues About Organizational Change and
    Development

6
Introduction
  • Organizational change involves movement from the
    present state of the organization to some future
    or target state
  • Future state can include a new strategy, new
    technology, or changes in the organizations
    culture

7
Introduction (Cont.)
Organizational change moving from thepresent
state of the organization to somefuture or
target state.
A
A
Time
8
Introduction (Cont.)
  • Many sources of pressure on managers to change
    their organizations exist and will continue in
    the future
  • Identify the pressures on organizations and their
    managers to change
  • Want to know the probable effects on you as a
    member of a changing system

9
Introduction (Cont.)
  • Know how to deliberately change an organization
  • Understand the sources of resistance to change
  • Learn how to manage the change process to reduce
    resistance

10
Forces For and Against Change
  • External forces for change
  • Competitors and markets
  • Acquisition threats
  • International global markets
  • Workforce diversity
  • Quality management

11
Forces For and Against Change
(Cont.)
  • Internal forces for change
  • High dissatisfaction
  • Felt stress
  • Loss of control of processes
  • Dysfunctionally high conflict
  • Slow decision making
  • High turnover and absenteeism
  • Communication dysfunctions

12
Forces For and Against Change
(Cont.)
  • Forces against change
  • Internal resistance to change from individuals
    and groups
  • External special interest groups such as
    consumer groups and unions

View the forces for and against change asa force
field working on the organization
13
Forces For and Against Change (Cont.)
A Force Field
Present state ofthe organization
Desired state ofthe organization
Forces againstchange
Forces forchange
A
A
Time
Text book Figure 18.1
14
Unplanned and PlannedOrganizational Change
  • Unplanned organizational change forces for
    change overwhelm resistance to change
  • Planned organizational change A deliberate,
    systematic change effort

15
Unplanned and PlannedOrganizational Change
(Cont.)
  • Unplanned organizational change
  • Forces for change overwhelm resistance to change
  • Usually unexpected
  • Chaotic, uncontrolled change effects
  • Example economic changes leading to reductions
    in workforce

16
Unplanned and PlannedOrganizational Change
(Cont.)
  • Planned organizational change
  • A deliberate, systematic change effort
  • Change organizational design, information
    systems, job design, and peoples behavior
  • Although managers try to follow a plan, the
    change does not always move smoothly
  • The change effort often hits blockages, causing
    managers to rethink their goals and plan

17
Unplanned and PlannedOrganizational Change
(Cont.)
  • Planned organizational change (cont.)
  • Phases
  • Define the desired future state of the
    organization
  • Diagnose the present state of the organization
  • Move the organization to the desired future state
  • A change agent helps managers to bring about
    planned change. An external or internal
    consultant

18
Targets of PlannedOrganizational Change
  • Organizational culture
  • Decision processes
  • Communication processes
  • Job design
  • Organizational design

19
Targets of PlannedOrganizational Change (Cont.)
  • Technology
  • Strategy

Managers should choose the target only after
careful assessment of the current state of the
organizationand the need for change.
20
Targets of PlannedOrganizational Change (Cont.)
A model for thinking about planned organizational
change
Targets Culture Technology Organizational
design Job design
External environment
Mission
Strategy
21
Planned Organizational Change
  • Reasons for planned organizational change
  • Managers react to environmental shifts
  • They anticipate the future state of the external
    environment
  • Often a difficult task. As noted by an
    organizational change scholar, planned
    organization change is messy and never as clear
    as we have written in our books and articles

22
Planned Organizational Change (Cont.)
  • Models of planned organizational change
  • Evolutionary model
  • Incremental change
  • Example changing the organizations pay scale
    to stay market competitive
  • Revolutionary model
  • Change many parts of an organization
  • Example strategic shift

23
Planned Organizational Change (Cont.)
  • Evolutionary model of organizational change
  • Three phases with no distinct boundaries. Each
    phase blends into the next phase
  • A manager or other change agent develops a need
    for change among those affected
  • The change agent then tries to move the
    organization or part of it toward the changed
    state
  • The change agent tries to stabilize the change
    and make it a part of the organization

24
Planned Organizational Change (Cont.)
  • Evolutionary model of organizational change
  • Sees change happening in small bits that add to a
    total amount of change
  • Unexpected events can occur along the way,
    forcing a return to an earlier phase

25
Planned Organizational Change (Cont.)
  • Revolutionary model of organizational change
  • Organizational change unfolds over long periods
    of stability followed by bursts of major change
    activities
  • Uses three concepts
  • Equilibrium period organization moves steadily
    toward its mission and goals
  • Revolutionary period a major change in the
    strategic direction of the organization
  • Deep structures enduring features of the
    organization that let it succeed

26
Planned Organizational Change (Cont.)
  • Revolutionary model of organizational change
    (cont.)
  • Two events trigger a revolutionary period
  • Dissatisfaction with the organization's
    performance
  • Strong feelings among organization members that
    it is time for change

27
Planned Organizational Change (Cont.)
  • Revolutionary model of organizational change
    (cont.)
  • Dissatisfaction with the organization's
    performance
  • Misfit between the organizations deep structure
    and its current environment
  • Follows a clear organizational failure or when
    many believe failure is imminent

28
Planned Organizational Change (Cont.)
  • Revolutionary model of organizational change
    (cont.)
  • Strong feelings among organization members that
    it is time for change
  • Organization members feel uneasy with the current
    equilibrium period
  • Develop feelings of little forward movement
  • Characterizes organizations that must shift
    direction

29
Resistance to Change
  • No matter what the target, changes affect the
    social system of an organization
  • People develop long-standing, familiar patterns
    of social interaction
  • Strong resistance develops when organizational
    change affects these social networks

30
Resistance to Change (Cont.)
  • Resistance can take many forms
  • Lack of cooperation with the change effort
  • Sabotage of the change effort
  • Dysfunctionally high conflict levels

31
Resistance to Change (Cont.)
  • Reasons for resistance to change
  • Perceive the loss of something valued such as
    social status
  • Misunderstand the goal of the change
  • Distrust the change agent
  • No common perception of the value of the change
  • Low tolerance for change

32
Resistance to Change (Cont.)
  • Managers orientation to resistance to change
  • Problem to overcome
  • Forcefully reduce resistance
  • Can increase resistance
  • Signal to get more information
  • Affected targets may have valuable insights about
    the changes effects
  • Change agent can involve the targets in
    diagnosing the reasons for the resistance

33
Resistance to Change (Cont.)
  • Managers orientation to resistance to change
    (cont.)
  • Absence of resistance
  • Also a signal to get more information
  • Low commitment to the change can make the change
    less effective
  • Resisters can focus the change agents on
    potentially dysfunctional aspects of a proposed
    change

34
Resistance to Change (Cont.)
  • Managing the change process to reduce resistance
  • Use change agents with characteristics similar to
    the change target
  • Use dramatic ceremonies and symbols to signal
    disengagement from the past
  • Widely communicate information about the change

35
Resistance to Change (Cont.)
  • Managing the change process to reduce resistance
    (cont.)
  • Involve those affected by the change
  • Commit enough resources
  • Negotiation may be necessary, when a powerful
    person or group is a potential source of
    resistance

36
Resistance to Change (Cont.)
  • Managing the change process to reduce resistance
    (cont.)
  • Cooptation a political tactic that aims to gain
    endorsement of the change from important
    individuals or groups
  • Sometimes no choice other than to force change
    onto the target system

37
Organizational Development
  • Organizational development is a long-term,
    systematic, and prescriptive approach to planned
    organizational change
  • Although it uses a system-wide view, it can focus
    on single subsystems of an organization
  • Applies the theories and concepts of the social
    and behavioral sciences to organizational change

38
Organizational Development (Cont.)
  • Tries to develop an organizations self-renewing
    capacity
  • Tries to create an organization that can
    continuously improve
  • Views conflict as an inevitable part of
    organizational life

39
Phases of Organizational Development (Cont.)
  • Organizational development unfolds in a series of
    phases
  • These are phases, not steps, because no clear
    boundaries exist between them
  • Phases can repeat. For example, during the
    evaluation phase, managers may discover a need
    for more data from the diagnosis stage

See text book Figure 18.2
40
Phases of Organizational Development (Cont.)
  • Entry
  • First contact of the consultant with the client
  • Usually client initiates contact
  • Building a client-consultant relationship
  • Mutual evaluation of each other
  • Decide they can develop a compatible working
    relationship

41
Phases of Organizational Development (Cont.)
  • Contracting
  • Develop an agreement between the consultant and
    client
  • Can range from an oral agreement to a legally
    binding agreement
  • Describes mutual expectations and each partys
    duties
  • Not static. Subject to renegotiation as the
    organizational development program unfolds

42
Phases of Organizational Development (Cont.)
  • Diagnosis
  • Consultant gets information about the client
    system and diagnoses its current state
  • Observe the clients behavior and reactions
  • Observe physical characteristics of system
  • Systematic data collection using surveys,
    interviews, and company records
  • Consultant summarizes this phases results for
    feedback to the client system

43
Phases of Organizational Development (Cont.)
  • Feedback
  • Consultant has a series of feedback meetings with
    client system members
  • The number of meetings varies according to the
    scope of the organizational development program
  • Several steps (1) consultants analysis (2)
    discussion (3) consultants preliminary
    diagnosis and (4) actively work with members of
    client system to arrive at collaborative diagnosis

44
Phases of Organizational Development (Cont.)
  • Planning the change
  • A collaborative activity between the consultant
    and client system
  • Identify alternative courses of action and the
    effects of each
  • Lay out the steps in the change program
  • Client decides the nature of the change
    program--not the consultant

45
Phases of Organizational Development (Cont.)
  • Intervention
  • Collaborative intervention to move the client
    system to the desired future state
  • Includes job and organizational design changes,
    conflict reduction program, and the like. See
    the Organizational Development Interventions
    section of the chapter
  • Consultants role help the intervention and
    forecast dysfunctional results
  • Earlier client involvement helps reduce
    resistance to change in the intervention phase

46
Phases of Organizational Development (Cont.)
  • Evaluation
  • Focuses on whether the organizational development
    effort had the desired effect
  • Ranges from simply asking how the client feels to
    a well-designed research effort
  • Done independently of the consultant
  • Should also give the client system information
    about the next steps to take

47
Phases of Organizational Development (Cont.)
  • Termination
  • Ends at some point
  • Client terminates consultant
  • As the client system changes and develops, the
    external consultant reduces involvement
  • Internal consultants are part of the organization
    and can continue contact
  • The goal is independence of the client system
    from the consultant. Build client system
    self-reliance

48
Organizational Development Interventions
  • Many interventions exist for organizational
    development programs
  • Systematic techniques drawn from the behavioral
    sciences
  • Earlier chapters have detailed descriptions of
    the interventions summarized here

49
Organizational Development Interventions (Cont.)
  • Human process interventions
  • Focus on interpersonal, intra-group, and
    intergroup processes
  • Includes conflict, communication and decision
    making
  • Goal improve human processes to get more
    effective organizational functioning

50
Organizational Development Interventions (Cont.)
  • Structural and technological interventions
  • Focus on organizational design, job design, and
    the addition of new technology
  • New technology focuses on improving
    organizational processes
  • Goal improve human productivity and
    organizational effectiveness

51
Organizational Development Interventions (Cont.)
  • Human resource management interventions
  • Draws on the human resource management or
    personnel practices of an organization
  • Includes motivation and rewards, career planning
    and development, and stress management
  • Goal change individual behavior and performance
    to get improved organizational effectiveness

52
Organizational Development Interventions (Cont.)
  • Strategy interventions
  • Changes in an organizations strategic position
    to better align it with the external environment
  • Includes changes in the organizations culture to
    create values and beliefs more congruent with the
    new environment
  • Goal strategic shifts to gain competitive
    advantage

53
Organizational Development Interventions (Cont.)
  • Multiple interventions have the strongest effects
  • Structural/technological interventions and human
    resource management interventions had the
    strongest effects
  • Effects stronger in small organizations than in
    large organizations
  • Survey feedback has weaker effects than other
    interventions

54
International Aspects of Organizational
Development
  • Intellectual roots of organizational development
    are mainly in the United States, England,
    northern Europe, and Scandinavia
  • Values and assumptions of organizational
    development consultants likely reflect these
    cultural values
  • Nature of interventions also reflect these
    cultural values

55
International Aspects of Organizational
Development
(Cont.)
  • Cultural differences and effect of organizational
    development approaches
  • Latin American workers often accept a directive
    management style
  • France and Italy view organizations as
    hierarchical systems that use power and political
    behavior
  • Sweden and the United States view organizations
    as less hierarchical

56
International Aspects of Organizational
Development
(Cont.)
  • Cultural differences and effect of organizational
    development approaches (cont.)
  • Conflict management approaches vary depending on
    tolerance of uncertainty
  • Tend to use nonconfrontational approaches to
    conflict reduction

57
Ethical Issues AboutOrganizational Development
  • Ethical dilemmas that can undermine an
    organizational development effort
  • Misrepresentation of consultants capabilities,
    skills, or experience
  • Misrepresentation of clients problems
  • Data confidentiality and voluntarism in providing
    data
  • Full awareness of and consent to the behavioral
    changes asked of participants
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