What Is Change?Making things different.• Organizational Change Any alterations in the people, structure, or technology of an organization• Characteristics of Change Is constant yet varies in degree and direction Produces uncertainty yet is not completely unpredictable Creates both threats and opportunities.
Forces of Change. External Demographic Characteristics Technological Advancements Shareholder, Customer, and Market Changes Social and Political Pressures The Need for Change Internal Human Resource Problem/Prospects Managerial Behavior/Decisions
Forces that Stimulate Change in Organizations.• External forces that stimulate change: Demographic characteristics Technological advancements Shareholder, Customer, and Market changes Social and political pressures
Forces that StimulateChange in Organizations• Internal forces that stimulate change: Human resource problems High turnover Perceptions of unfair treatment Managerial Behavior/Decisions Excessive interpersonal conflict Inadequate direction or support
Change Agents• Change Agents Persons who act as catalysts and assume the responsibility for managing the change process.• Types of Change Agents Managers: internal entrepreneurs Nonmanagers: change specialists Outside consultants: change implementation experts
Types of Organizational Change Radically Adaptive Innovative Radically Innovative Change Change Innovative Change Change Reintroducing Introducing a Introducing a a familiar practice new to practice new to practice the the industry organization Low High Degree of complexity, cost, and uncertainty Potential for resistance to change
Change Process Viewpoints• The Calm Waters Metaphor Lewin’s description of the change process as a break in the organization’s equilibrium state
Lewin’s Change Model• Unfreezing Creates the motivation to change Benchmarking Data Financial data, emerging trends Changing – Provides new information, new behavioral models, or new ways of looking at things Refreezing – Helps employees integrate the changed behavior or attitude into their normal way of doing things
Change Process Viewpoints• White-Water Rapids Metaphor The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.
Why People Resist Change in the Workplace1) An individuals’ predisposition toward change2) Surprise and fear of the unknown3) Climate of mistrust4) Fear of failure5) Loss of status and/or job security
Why People Resist Change in theWorkplace 6) Peer pressure 7) Disruption of cultural traditions and/or group relationships 8) Personality conflicts 9) Lack of tact and/or poor timing 10) Nonreinforcing reward systems 11) Past success
Overcoming Resistance to ChangeTactics for dealing with resistance to change:• Education and communication• Participation• Facilitation and support• Negotiation• Selecting people who accept change• Coercion