Managing

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Chapter 22 Managing Change
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Objectives

• Describe the nature of change
• Explain the essential components in the change
  process
• Understand the leaders role in the change
  process
• Define resistance to change and its function
• List tactics for dealing with resistance to change

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Basic Requirements for Successful Change Efforts

• Top management support
• Critical mass
• Trust
• New psychological contracts
• New learned behaviors
• Organizational learning
• Institutionalization of innovations

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Types of Change

• Incremental
• (first-order)
• Linear
• Continuous
• Targeted at fixing /
• modifying problems /
• procedures

• Transformative
• (second-order, gamma)
• Radical
• Discontinuous
• Multidimensional
• Multilevel
• Modifies the fundamental structure, systems,
  orientation and strategies

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Critical Mass - Defined
Critical mass is defined as the smallest number
of people and / or groups who must be committed
to a change for it to occur
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Lewins Change Process
Unfreezing Stress, tension, strong felt need
for change
Moving Give up old ways of behaving, Test new
behaviors, attitudes and values
Refreezing Reinforce, internalize, institutionali
ze new behavior
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Change Is a Process -not an Event or Managerial
Edict
Technical Solution
Process
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Steps in the Change Process
Determining the need for change
Forming a guiding coalition
Developing a shared vision
Evaluating the change
Creating a tentative plan
Implementing the change
Analyzing potential resistance and obtaining
participation
Establishing an implementation plan
Communicating the change
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When Are Conditions Favorable for Change?

• C(D X S X P) gt X
• Where
• C change
• D dissatisfaction with status quo
• S an identifiable and desired end state
• P practical plan for achieving the desired end
  state
• X the cost of change to the organization

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Force Field Analysis - Defined
Force field analysis assigns pressures for
change and resistance to change to
opposite sides of an equilibrium state.

• Forces against
• change

• Forces for change

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Creative Tension - Defined

• Creative tension results from perceiving the
• gap between the ideal situation and an
• honest appraisal of its current reality

Ideal situation
Current reality
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Creating a Sense of Urgency

• Create a crisis by allowing a loss/error to blow
  up
• Eliminate obvious examples of excess
• Set targets so high they cant be reached by
  doing business as usual
• Share more info on customer satisfaction and
  financial performance
• Insist employees talk with unsatisfied customers,
  suppliers, shareholders
• Stop happy talk and be honest

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Change Agents - Defined
Change agents are people who act as catalysts and
assume the responsibility for managing change
activities
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Role of Transformational Leaders

• Envision
• Articulate a clear and credible vision
• Set new and difficult standards for performance
• Generate pride in past accomplishments and
  enthusiasm for new strategy

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Role of Transformational Leaders

• Energize
• Personally demonstrate excitement for changes
• Model the behaviors that are expected of others
• Communicate examples of
  early successes to mobilize energy
  for change

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Role of Transformational Leaders

• Enable
• Provide resources necessary for undertaking
  significant change
• Use rewards to reinforce new behaviors
• Build an effective top-management team to manage
  the new organization
• Develop management
• practices to support
• the change process

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Resistance to Change - Defined

• Resistance is a natural reaction to change
• and part of the process of adaptation
• Ensures that plans for change and their
• ultimate consequences are carefully thought
  through

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Handling Resistance to Change

• View it as something else that must be
• managed by
• Understanding the source
• Listening carefully to concern
• Refraining from seeing resisters as adversaries
• Using the appropriate tactic in response

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Sources of Resistance

• Inadequate change goal
• Inadequate process
• Personal resistance
• Political resistance
• Systemic resistance

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Tactics for Dealing with Resistance

• Empathy
• Education and communication
• Participation and involvement
• Facilitation and support
• Co-optation
• Negotiation and agreement
• Manipulation
• Coercion

Commitment
Compliance
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Organizational Development (OD) - Defined

• Organization development (OD) is a specialized
• system-wide process of data collection,
  diagnosis,
• action, planning, intervention, and evaluation
• aimed at
• enhancing congruence between organizational
  structure, process, strategy, people, and
  culture, 
• developing new and creative organizational
  solutions, and
• (3) developing the organizations self-renewing
  capacity.

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Cultural Values Underlying OD

• Respect for people
• Trust and support
• Equality and power sharing
• Candor and confrontation
• Participation
• Collaboration

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When Does Culture Matter with Change?

• OD values are not reflective of all cultures.
• Cultures vary in terms of their comfort with
  change, beliefs about how change occurs, and how
  it should be implemented.
• Cultural values affect the change implementation
  process
• Change interventions that work in one country may
  not succeed elsewhere. Corporate-wide changes
  have to be contextualized

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