1. Managing Change

2. Organizational Change
Unplanned Change –
Planned Change – change that is imposed
change resulting on the organization
from a deliberate and is often
decision to alter the unforeseen
organization
Managers must be
prepared to handle both

3. External Forces for Change
Globalization Workforce
Diversity
Changing Ethical
Technology Behavior

4. Globalization
Organizations must rethink
the most efficient ways to
Majority of
Use resources
new workers
Disseminate/gather information
will be female
Develop people
Workforce will
grow in diversity -
Structural
Change
and
Workforce is aging -
Mental less young workers, more
Change middle-aged
Workforce
Diversity

5. Ethical
Behavior Other Organizations
Customers
Ethical
Treatment Changes
Environment in work
relationships
Society Technological
Change
Changes in
Changing organizational
Technology structure

6. Internal Forces for Change
Company
Declining Crisis
Effectiveness
Changing
Changing Employee
Work Climate Expectations

7. Scope of Change
Incremental Change – change of a
relatively small scope, such as making
small improvements
Strategic Change – change of a larger
scale, such as organizational
restructuring
Transformational Change – change in
which the organization moves to a
radically different, and sometimes
unknown, future state

8. The Change Agent’s Role
Change Agent – the individual or group
who undertakes the task of introducing
and managing a change in an
organization
Effective change leaders build relationships
– Within the leadership team
– Between the team and organizational
members
– Between the team and key environmental
players

9. Internal Change Agents
Advantages Disadvantages
• know past history, • may be associated
political system, with factions,
and culture accused of
• must live with favoritism
results of change • may be too close to
so will move the situation to be
carefully objective

10. External Change Agents
Disadvantages
Advantages
• limited knowledge of
• outsider’s
organization’s
objective view
history
• impartiality • may be viewed with
suspicion
To succeed, they must be perceived as trustworthy,
be experts with proven track records, be similar to
those they are working with

11. Resistance to Change
• Fear of the unknown
• Fear of loss
• Fear of failure
• Disruption of
interpersonal
relationships
• Personality conflicts
• Politics
• Cultural assumptions
and values

12. Dealing with
Resistance to Change
• Communication
– details
– rationale
• Participation in
the process
– ownership
– commitment
• Empathy and
support

13. Reactions to Change and Managerial Interventions
Reaction Expression Managerial
Intervention
Disengagement Withdrawal Confront, identify
psychological withdrawal
from change
Disidentification Sadness, worry Explore, transfer
feeling that one’s
identity is being
threatened by change
Disenchantment Anger Neutralize,
feeling negativity or acknowledge
anger toward a change
Disorientation Confusion Explain, plan
feelings of loss and
confusion due to change
Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15.
Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.

14. Lewin’s Three-Step Change
Model
1. Unfreezing – involves encouraging
individuals to discard old behaviors by
shaking up the equilibrium state that
maintains the status quo
2. Moving – new attitudes, values, and
behaviors are substituted for old ones
3. Refreezing – involves the
establishment of new attitudes, values,
and behaviors as the new status quo

15. Force Field Analysis of Decision to
Engage in Exercise
Forces for change Forces for status quo
Weight gain Lack of time
Minimally passing No exercise facility at
treadmill test work
Feel lethargic; Spouse/partner hates
to exercise
have no energy Equilibrium
No interest in
Family history of physical activity or
cardiovascular sports
disease Made a grade of D in
New, physically physical education
demanding job class

16. Applying Lewin’s Model
to the Organization
Unfreezing Moving Refreezing
Reducing forces Developing new Reinforcing new
For status quo attitudes, values, attitudes, values,
and behaviors and behaviors
• Unfreezing: the organization eliminates rewards
for current behavior
• Moving: the organization initiates new options
and explains their rationale
• Refreezing: organizational culture and formal
reward systems encourage the new behaviors

17. Organizational Development (OD)
Organizational Development (OD) – a
systematic approach to organizational
improvement that applies behavioral
science theory and research in order to
increase individual and organizational
well-being and effectiveness

18. Diagnosis and Needs
Analysis
Diagnosis and
needs analysis Intervention
Follow-up
Ask
• What are the forces for change?
• What are the forces preserving the status quo?
• What are the most likely sources of resistance?
• What are the goals to be accomplished by
change?

19. OD Intervention Methods:
Organizational/Group Techniques
Survey Feedback
– a widely used
method of
Anonymous
intervention
Group reporting format
whereby
employee No repercussions
attitudes are Clear purpose
solicited by Follow-up
questionnaire

20. OD Intervention Methods:
Organizational/Group Techniques
Management by Objectives –
an organization-
wide intervention
technique of joint
goal setting Initial objectives
between Periodic progress
employees and reviews
managers Problem solving to
remove obstacles
to goal achievement

21. OD Intervention Methods:
Organizational/Group Techniques
Quality Program –
a program that Raise aspirations about
embeds product product/service
and service quality quality
Embed product/service
excellence into the
quality excellence in
organizational
the organizational
culture culture

22. OD Intervention Methods:
Organizational/Group Techniques
Team Building –
an intervention
Seek feedback
designed to Discuss errors
improve the Reflect on successes and
effectiveness of a failures
work group Experiment with new ways
of performing
Climate of psychological
safety

23. OD Intervention Methods:
Organizational/Group Techniques
Process Consultation –
an OD method
that helps Outside consultant:
Enters organization
managers and
Defines the relationship
employers Chooses an approach
improve the Gathers data
processes that are Diagnoses problem
used in Intervenes
organizations Leaves organization

24. OD Intervention Methods:
Individual-Focused Techniques
Skills Training –
increasing the
job knowledge,
skills, and In formal classroom
abilities that are settings
necessary to do On the job (Continual
a job effectively updating)

25. OD Intervention Methods:
Individual-Focused Techniques
Leadership Training
and Development –
a variety of
techniques that are
Action learning
designed to enhance
Simulation
individual’s Business games
leadership skills Role-playing
Case studies

26. OD Intervention Methods:
Individual-Focused Techniques
Executive Coaching –
a host of
techniques for
enhancing Verbal information
managers’ skills Intellectual skills
in an organization Attitudes
Development

27. OD Intervention Methods:
Individual-Focused Techniques
Role Negotiation –
a technique
whereby
individuals meet
and clarify their Outcomes
psychological • Better understanding of
contract what each can be
expected to give and
receive
• Less ambiguity

28. OD Intervention Methods:
Individual-Focused Techniques
Job Redesign –
an OD
intervention
method that alters
jobs to improve Realign task demands
the fit between and individual
individual skills capabilities
and the demands Redesign jobs to fit new
techniques or
of the job
organization structures

29. OD Intervention Methods:
Individual-Focused Techniques
Health
Promotion Ex. Stress reduction education,
employee assistance
Programs
Career Match individual’s career
aspirations with organizational
Planning opportunities

30. Ethical Considerations in
Organizational Development
• Selection of the OD method
• Voluntary participation
• Confidentiality
• Potential for manipulation by the
change agent