DescriptionTotal Possible Score 8.00Defines Each TheoryT

Description:
Total Possible Score: 8.00
Defines Each Theory
Total: 2.00
Distinguished - Provides a thorough definition of the major
motivation and job satisfaction theories.
Proficient - Provides a definition of the major motivation and
job satisfaction theories. One or more definitions are slightly
underdeveloped.
Basic - Provides a limited definition of the major motivation
and job satisfaction theories. One or more definitions are
underdeveloped.
Below Expectations - Attempts to provide a definition of the
major motivation and job satisfaction theories; however, one or
more definitions are significantly underdeveloped.
Non-Performance - The definition of the major motivation and
job satisfaction theories is either nonexistent or lacks the
components described in the assignment instructions.
Describes a Specific Situation Related to Motivation and Job
Satisfaction
Total: 1.00
Distinguished - Provides a thorough description of a specific
situation related to motivation and job satisfaction.
Proficient - Provides a description of a specific situation related
to motivation and job satisfaction. The description is slightly
underdeveloped.
Basic - Provides a limited description of a specific situation
related to motivation and job satisfaction. The description is
underdeveloped.
Below Expectations - Attempts to provide a description of a
specific situation related to motivation and job satisfaction;
however, the description is significantly underdeveloped.

Non-Performance - The description of a specific situation
related to motivation and job satisfaction is either nonexistent
or lacks the components described in the assignment
instructions.
Applies One of the Theories to the Situation
Total: 1.00
Distinguished - Comprehensively applies one of the theories to
the situation. The application is supported with relevant
examples from scholarly articles.
Proficient - Applies one of the theories to the situation. The
application is supported with examples from scholarly articles,
but is slightly underdeveloped.
Basic - Partially applies one of the theories to the situation. The
application is somewhat supported with examples from
scholarly articles, and is underdeveloped.
Below Expectations - Attempts to apply one of the theories to
the situation; however, the application is not supported with
examples from scholarly articles and is significantly
underdeveloped.
Non-Performance - The application of one of the theories to the
situation is either nonexistent or lacks the components
described in the assignment instructions.
Discusses the Usefulness of the Theory in Explaining Employee
Performance
Total: 1.00
Distinguished - Comprehensively discusses the usefulness of the
theory in explaining employee performance. The discussion is
supported with relevant examples from scholarly sources.
Proficient - Discusses the usefulness of the theory in explaining
employee performance. The discussion is supported with
examples from scholarly sources, but is slightly
underdeveloped.
Basic - Partially discusses the usefulness of the theory in
explaining employee performance. The discussion is somewhat

supported with examples from scholarly sources, and is
underdeveloped.
Below Expectations - Attempts to discuss the usefulness of the
theory in explaining employee performance; however, the
discussion is not supported with examples from scholarly
sources and is significantly underdeveloped.
Non-Performance - The discussion of the usefulness of the
theory in explaining employee performance is either nonexistent
or lacks the components described in the assignment
instructions.
Provides Examples of Advantages and Disadvantages of the
Theory Explaining Employee Motivation or Job Satisfaction
Total: 1.00
Distinguished - Provides thorough examples of advantages and
disadvantages of the theory explaining employee motivation or
job satisfaction.
Proficient - Provides examples of advantages and disadvantages
of the theory explaining employee motivation or job
satisfaction. The examples are slightly underdeveloped.
Basic - Provides limited examples of advantages and
job satisfaction. The examples are underdeveloped.
Below Expectations - Attempts to provide examples of
advantages and disadvantages of the theory explaining
employee motivation or job satisfaction; however, the examples
are significantly underdeveloped.
Non-Performance - The examples of advantages and
job satisfaction is either nonexistent or lacks the components
described in the assignment instructions.
Critical Thinking: Explanation of Issues
Total: 0.50
Distinguished - Clearly and comprehensively explains the issue
to be considered, delivering all relevant information necessary

for a full understanding.
Proficient - Clearly explains the issue to be considered,
delivering enough relevant information for an adequate
understanding.
Basic - Briefly explains the issue to be considered, delivering
minimal information for a basic understanding.
Below Expectations - Briefly explains the issue to be
considered, but may not deliver additional information
necessary for a basic understanding.
Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.
Written Communication: Content Development
Total: 0.50
Distinguished - Uses appropriate, pertinent, and persuasive
content to discover and develop sophisticated ideas within the
context of the discipline, shaping the work as a whole.
Proficient - Uses appropriate and pertinent content to discover
ideas within the context of the discipline, shaping the work as a
whole.
Basic - Uses appropriate and pertinent content but does not
apply it toward discovering or developing ideas. Overall,
content assists in shaping the written work.
Below Expectations - Uses content, though it may be unrelated
or inappropriate to the topic. Content does not contribute
toward the development of the written work and may distract
the reader from its purpose.
Written Communication: Control of Syntax and Mechanics
Total: 0.25
Distinguished - Displays meticulous comprehension and
organization of syntax and mechanics, such as spelling and
grammar. Written work contains no errors and is very easy to
understand.

Proficient - Displays comprehension and organization of syntax
and mechanics, such as spelling and grammar. Written work
contains only a few minor errors and is mostly easy to
understand.
Basic - Displays basic comprehension of syntax and mechanics,
such as spelling and grammar. Written work contains a few
errors which may slightly distract the reader.
Below Expectations - Fails to display basic comprehension of
syntax or mechanics, such as spelling and grammar. Written
work contains major errors which distract the reader.
Written Communication: APA Formatting
Total: 0.25
Distinguished - Accurately uses APA formatting consistently
throughout the paper, title page, and reference page.
Proficient - Exhibits APA formatting throughout the paper.
However, layout contains a few minor errors.
Basic - Exhibits limited knowledge of APA formatting
throughout the paper. However, layout does not meet all APA
requirements.
Below Expectations - Fails to exhibit basic knowledge of APA
formatting. There are frequent errors, making the layout
difficult to distinguish as APA.
Written Communication: Page Requirement
Total: 0.25
Distinguished - The length of the paper is equivalent to the
required number of correctly formatted pages.
Proficient - The length of the paper is nearly equivalent to the
required number of correctly formatted pages.
Basic - The length of the paper is equivalent to at least three
quarters of the required number of correctly formatted pages.

Below Expectations - The length of the paper is equivalent to at
least one half of the required number of correctly formatted
pages.
Written Communication: Resource Requirement
Total: 0.25
Distinguished - Uses more than the required number of
scholarly sources, providing compelling evidence to support
ideas. All sources on the reference page are used and cited
correctly within the body of the assignment.
Proficient - Uses the required number of scholarly sources to
support ideas. All sources on the reference page are used and
cited correctly within the body of the assignment.
Basic - Uses less than the required number of sources to support
ideas. Some sources may not be scholarly. Most sources on the
reference page are used within the body of the assignment.
Citations may not be formatted correctly.
Below Expectations - Uses an inadequate number of sources
that provide little or no support for ideas. Sources used may not
be scholarly. Most sources on the reference page are not used
within the body of the assignment. Citations are not formatted
correctly.
9 Leading Change
Image source pink/Thinkstock
Learning Objectives

After reading this chapter, you should be able to:
• Understand the nature of organizational change.
• Apply aspects of the change models to
specific organizational circumstances.
• Lead and manage the change process
effectively.
• Recognize additional complications that can occur
as organizations make changes.
war82476_09_c09_285-318.indd 285 3/3/16 11:30 AM
Introduction
Introduction
Tasty Catering, a large full-service catering company in
Chicago, is owned by three broth-
ers: Tom, Larry, and Kevin Walter. In 2005, CEO Tom Walter
was approached by his son and
another Tasty employee. They told Tom that if things didn’t
change they were going to look
for work elsewhere. The conversation opened Tom’s eyes to a
multitude of problems that
further investigation proved to be true but that others were
afraid to share. It also became the
catalyst for a transformational change process that not only
saved the company from closing
its doors but also turned it into an award-winning company that
served as an incubator for
other entrepreneurial activities and the subject of a book about
how to build organizations
for success (Thompson, Benedetto, Ramon, Walter, & Meyer,
2013).

The change process began with the brothers taking the book
Good to Great by Jim Collins
and using it to transform the company step by step. The leaders
learned to operate in a more
collaborative way and committed to building a highly ethical,
employee-centered, customer-
friendly organization that performed far above the norm. They
established a set of core values
to be featured on a daily basis when making decisions. They
also created two employee-run
councils to give input regarding top-level decisions, including
everything from how things are
done, to new strategies, to acquisitions. Everyone, from the
executives to the dishwashers,
was involved in working together and sharing ideas. Culture
became critical to the success
of the organization to the point that the CEO’s title was changed
to chief culture officer. The
result has been that the company transformed into a vital,
growing, successful business that
became a magnet for attracting talented people, a training
ground for future entrepreneurs,
and the source of a multitude of awards including being one of
the Top 100 Best Places to
Work in the United States, the Caterer of the Year, the Number
One Best Place to Work in Illi-
nois, and many others. The willingness of leaders like those at
Tasty Catering to undertake
needed changes made the difference.
Effectively managing the change process is vitally important in
today’s times. Leaders need
to make learning to manage change a top priority. Today’s
leaders are immersed in nonstop
change. In efforts to succeed in an increasingly competitive and

global marketplace, organi-
zations are involved in a wide variety of change efforts. Some
are involved in changing their
mission, strategies, goals, cultures, processes, systems,
practices, and technologies. Others
are involved in restructuring, flattening, and possibly
downsizing the organization and in
cost- cutting efforts. Many organizational leaders experience a
reshuffling of people from top
to bottom and having to adapt to mergers and acquisitions that
result in major changes. All of
these efforts involve change and the need for a high level of
skills in managing change. Some
authors even believe that the very futures of organizations will
depend on the ability to mas-
ter managing change (Hayes, 2003).
This chapter considers four items. First, we will examine the
basic nature of organizational
change. Next, we’ll look at various models of change. Then,
leadership strategies and skills are
outlined. Finally, the chapter closes with an examination of the
additional challenges associ-
ated with change.
war82476_09_c09_285-318.indd 286 3/3/16 11:30 AM
Section 9.1 The Nature of Organizational Change
9.1 The Nature of Organizational Change
The world of business is experiencing an increasing rate of
change, a trend that Alvin Toffler
(1970) predicted nearly half a century ago. Changes can come in

many forms. Some are small
alterations to minor processes. Others are major changes, such
as restructuring an organiza-
tion or appointing a new leader. Large or small, they need to be
effectively managed as they
may affect behavior, performance, and morale and may cause
other outcomes. Table 9.1 dis-
plays types of change to consider.
Table 9.1: Types of changes
Planned
Unplanned
Evolutionary
Incremental
Transformational
Planned changes are those made intentionally that require a
purpose and a plan to execute.
Planned changes can be large or small and require minimal or
in-depth planning. They include,
for example, changes in products, services, processes, systems,
structures, personnel, or tech-
nology or reorganizations, mergers, or acquisitions. The greater
the impact of the change and
the more complex the change, the greater the need for planning
and involvement in design-
ing and implementing the change and expertise in effective
change management becomes.
Planned changes that are not carefully designed and
implemented have a lower probability of
success. In contrast, consider the addition of the Kindle to

Amazon’s operations in 2007. This
well-planned launch led to a greater expansion of product line
offerings over time.
Unplanned changes naturally evolve or occur in response to
internal or external events, or
are made with little if any consideration given to planning the
change. Unplanned changes
could be slow and unnoticeable such as changes in societal
values and the diversity or inter-
nationalization of the workforce. They also result from
unanticipated events such as natural
disasters, significant domestic or global economic or market
changes, or new government
regulations. Unfortunately, the major source of unplanned
change is leaders who approach
change without a strategy for planning and implementing
changes.
Evolutionary changes are slow-developing unplanned changes
that occur with little action
by leaders. Leaders should pay attention to possible slow -
moving trends such as societal,
technological, or generational changes so they will not be
caught off guard when they sud-
denly begin to have an impact. Many companies including
Borders bookstores are no longer
around because top managers did not anticipate the changes
taking place in the industry.
Incremental changes are the most common form of change.
These are planned changes
designed to result in improvements in an organization or to
respond to internal or external
events. They could involve any of the previously mentioned
changes. They are incremental

in that they are a planned response and are likely to result in a
small to medium degree of
change. One analogy suggests that incremental change
represents a nibble on an apple rather
war82476_09_c09_285-318.indd 287 3/3/16 11:30 AM
than taking a “big bite.” Doing so represents a safe approach for
a leader, who can watch to see
if the moves help or hurt the company without causing major
upheaval. Over time this can
lead to a productive new course of action for the company. As
an example, Zappos.com began
selling only shoes in its online operations, but over time has
evolved into a variety of product
offerings.
Transformational changes are the planned events that result in
major differences in the
way things are done. The term “transformation” signifies
something significant or dramatic.
Transformational changes could involve a noticeable change in
the vision, mission, core val-
ues, or culture of an organization or the strategies, processes,
systems, or structures of an
organization (Porras & Silvers, 1991; Tichy, 1993). IBM, Ford,
and Xerox, for example, basi-
cally had to undertake transformational changes in order to
remain vital and competitive.
Unfortunately, many of the failures in managing all of these
types of change can be attributed

to leaders who do not approach it from the proper perspecti ve.
Change is often a top-down
process. Leaders frequently announce changes that are not based
on a clear understanding of
the situation with minimal or no involvement of those most
impacted by what is about to take
place. Consequently, changes often have little to do with the
realities facing those required
to implement them. Further, when key stakeholders are not
involved in planning and imple-
menting the changes, they are likely to be unwilling or
unmotivated about making the change
successful. Other change failures result when leaders do not
take into account the impact of
change on the health, effectiveness, and self-renewing
capabilities of an organization.
Another problem is that few leaders are knowledgeable about
how to manage change and
consequently most changes fail. Extensive change research
indicates that 70% or more of
organizational changes fail to achieve the desired results or fail
altogether with the “cure”
sometimes being worse than the “disease” (Kotter, 2007; Burke,
2011; Miller, 2002; The Con-
ference Board, 1994; Senge, 1999). Imagine the far-reaching
consequences of a high failure
rate at implementing changes. Some of the failures associated
with attempts to make neces-
sary changes can be attributed to employee resistance.
The purpose of this chapter is to prepare managers and leaders
to be in better positions to
anticipate and make changes. Doing so requires an
understanding of many factors, includ-
ing things that cause companies to need to change along with

methods used to implement
changes.
Change Factors
What causes a company to need to change? Any number of
forces can lead to the decision to
make changes in an organization. Factors that lead to change
may be found inside a company
and can also be dictated by external events (see Table 9.2).
Leaders should identify items that
lead to change and then propose the types of responses that best
fit the situation.
Table 9.2: Change factors
Internal Factors
Growth
Crisis
Opportunity
External Factors
Political forces
Social forces
Economic forces
Competition
Technological Factors

Internal
External
Internationalization
war82476_09_c09_285-318.indd 288 3/3/16 11:30 AM
than taking a “big bite.” Doing so represents a safe approach for
a leader, who can watch to see
if the moves help or hurt the company without causing major
upheaval. Over time this can
lead to a productive new course of action for the company. As
an example, Zappos.com began
selling only shoes in its online operations, but over time has
evolved into a variety of product
offerings.
Transformational changes are the planned events that result in
major differences in the
way things are done. The term “transformation” signifies
something significant or dramatic.
Transformational changes could involve a noticeable change in
the vision, mission, core val-
ues, or culture of an organization or the strategies, processes,
systems, or structures of an
organization (Porras & Silvers, 1991; Tichy, 1993). IBM, Ford,
and Xerox, for example, basi-
cally had to undertake transformational changes in order to
remain vital and competitive.
Unfortunately, many of the failures in managing all of these

types of change can be attributed
to leaders who do not approach it from the proper perspective.
Change is often a top-down
process. Leaders frequently announce changes that are not based
on a clear understanding of
the situation with minimal or no involvement of those most
impacted by what is about to take
place. Consequently, changes often have little to do with the
realities facing those required
to implement them. Further, when key stakeholders are not
involved in planning and imple-
menting the changes, they are likely to be unwilling or
unmotivated about making the change
successful. Other change failures result when leaders do not
take into account the impact of
change on the health, effectiveness, and self-renewing
capabilities of an organization.
Another problem is that few leaders are knowledgeable about
how to manage change and
consequently most changes fail. Extensive change research
indicates that 70% or more of
organizational changes fail to achieve the desired results or fail
altogether with the “cure”
sometimes being worse than the “disease” (Kotter, 2007; Burke,
2011; Miller, 2002; The Con-
ference Board, 1994; Senge, 1999). Imagine the far-reaching
consequences of a high failure
rate at implementing changes. Some of the failures associated
with attempts to make neces-
sary changes can be attributed to employee resistance.
The purpose of this chapter is to prepare managers and leaders
to be in better positions to
anticipate and make changes. Doing so requires an
understanding of many factors, includ-

ing things that cause companies to need to change along with
methods used to implement
changes.
Change Factors
What causes a company to need to change? Any number of
forces can lead to the decision to
make changes in an organization. Factors that lead to change
may be found inside a company
and can also be dictated by external events (see Table 9.2).
Leaders should identify items that
lead to change and then propose the types of responses that best
fit the situation.
Table 9.2: Change factors
Internal Factors
Growth
Crisis
Opportunity
External Factors
Political forces
Social forces
Economic forces
Competition
Technological Factors

Internal
External
Internal Factors
The first set of items that can inspire change comes from within
the company. Three primary
forces include company growth, a crisis, or an opportunity. In
terms of growth, a variety of
theories have been proposed suggesting that as an organization
increases in size, many pres-
sures to make change emerge. Growth leads to greater numbers
of employees, expansion
in terms of building space and operating locations, the delivery
of new products and prod-
uct improvements, and increases in the number of specialties or
specialists. In essence, one
change (growth) leads to other changes (methods of operation).
Blau and Schoenherr (1971) and Chandler (1962) note that
many companies tend to form
with a centralized, functional form of organizational structure.
In other words, one key indi-
vidual, often the entrepreneur who founds the company, directs
all activities and makes all key
decisions. The structure of the company features basic
functions, such as accounting, sales,
and production. With growth, the top manager becomes less
able to be involved in every
single activity, which leads to delegation and decentralization
of authority. Growth has led to
a change in the way the company is managed.

An organizational crisis will also drive change. When a firm is
threatened, two changes
become more likely. First is recentralization, or a process by
which a manager seizes control
and becomes more authoritative and directive in response to a
challenge to the organization.
Second, firms threatened by various forces also tend to create
departments or organizational
subunits (task forces, committees) to respond to the crisis
(Thompson, 1967). The company
deploys a new structure in response to the crisis. In both
instances, a leader will be primarily
in charge of the changes.
war82476_09_c09_285-318.indd 289 3/3/16 11:30 AM
The third internal factor that leads to change is an opportunity.
Netflix and other providers
have discovered that it is possible to deliver content prepared
by others but also to develop
original programming to be sent out using the same venue. The
result has been expansion
of these companies and dramatic changes to their managerial
structures. The opportunity
presented by Internet streaming of video content led to these
changes. Such changes affect
Netflix and all other competitors, including the major television
networks.
External Factors
Many times, factors outside of the organization dictate what
happens inside. The external

environment often shapes the responses company leaders must
make in order to remain
competitive. Leaders constantly monitor political, social,
economic, and competitive elements
in the environment in order to keep the company responsive to
trends and changes.
Political forces are often expressed through laws, regulations,
and regulatory agencies. Each
election cycle creates the potential for new laws that will affect
a specific business, such as the
credit industry and Internet commerce. The same holds true for
taxation and tax policies. The
manner in which a company or industry is taxed affects the
operation of that firm or industry.
Court decisions also lead to changes. In 2015, the Supreme
Court changed laws regarding
same sex couples, which meant that companies across the
country were expected to respond.
Many firms, such as airlines and food production, are affected
by the nature of governmental
subsidies and loans. Company leaders monitor political
activities that might affect a firm’s
status.
Social trends also generate change. The social environment in
the United States has shifted
dramatically over the past half century. Demographic shifts,
such as the composition of family
units (single-parent households, mixed families), have altered
the manner in which consum-
ers make purchases and carry out other activities associated
with business organizations (day
care, insurance). Currently, many leaders have encountered a
changing workforce, largely
affected by the nature of education. Specifically, at one extreme

there is a highly educated
population of college graduates and others with training beyond
high school. At the other, a
growing number of individuals do not complete high school
before entering the workforce.
This bifurcation in educational attainment may have dramatic
effects on the workplace of the
future, and leaders will be expected to cope with the situation.
Economic shifts have had a dramatic impact on companies over
the past two decades. The
2008 recession changed many companies in a long-lasting
fashion. Company leaders were
challenged to respond to the crisis of unemployment along with
many economic side effects,
including low interest rates, higher rates of default on loans,
and shifting purchase patterns
in which wary consumers became less willing to part with
disposable dollars. The move from
a production-based to a service-based economy has changed
business dramatically over the
past half century, and leaders have been assigned to cope with
the new economy.
Competitive forces often drive companies to change. Consider
the delivery of music to con-
sumers. Dominant record companies at first would not even
allow the music to be played on
radio stations. When some artists demanded the change, it
eventually took place and radio-
delivered music became the norm. Then, record producers were
challenged by new technolo-
gies such as audio and cassette tapes. Not long after, music via
CDs became the standard. Now,
war82476_09_c09_285-318.indd 290 3/3/16 11:30 AM

independent artists can create music and load it to sites on the
Internet, thereby creating an
entire new delivery of music in which consumers have a greater
impact on the success levels
of individual musicians, just as devices such as iPhones replace
CDs. Managers and leaders in
many music-related companies must now cope with these
changes in the environment.
Technological Forces
Technology changes companies in internal and external ways.
At times, technology is essen-
tially forced on the company and leaders must respond. For
example, the ability to purchase
stock online changed the nature of the financial markets just as
travel sites on the Internet
changed the manner in which consumers buy airline tickets and
book hotels. In both instances,
the companies that formerly served consumers in one way
(booking hotels by phone) were
forced to meet the new standards set by changing technology.
Technology can also represent an internal force that drives
changes. When a firm develops
a new device or method that creates a competitive advantage, i t
must change in order to
respond. Leaders are in charge of implementing such changes.
In summary, numerous forces lead to the planned, unplanned,
evolutionary, incremental, and
transformational (revolutionary) changes companies undergo.

Leadership will always be at
the forefront of identifying things that need to be changed and
then implementing specific
activities and operations within those companies.
For many years, the impact of internationalization on the
operations of various companies
has risen dramatically. Global forces become causes of change
in many ways, including the
effects related to:
• increasing competition;
• impact on the workforce; and
• impact on operational methods.
In terms of competition, many firms now encounter
circumstances in which competition may
be found not only down the street or in the same city, but from
companies around the world.
Everyday items such as clothing and food are produced and
shipped from faraway places, forc-
ing managers to adapt to numerous changes in terms of the
tactics used to respond to them.
Further, some items that were relatively unique a half century
ago have been adopted and are
now frequently used in new settings. Condiments such as salsa
and soy sauce are examples.
Manufacturers of bigger-ticket items including durable goods
(washers, microwave ovens),
automobiles, and electronics (mobile phones, laptops) now
encounter and must respond to
worldwide competition, which forces dramatic changes. Service
providers including telemar-
keting, financial items, and others face the same new dynamic,
competitive environment and

must change in response.
Globalization has also changed the workforce. In some
companies, the ability to offshore and
outsource has driven down wages or eliminated jobs in one
economy while providing jobs
in another. Also, managers in multinational forces find that they
must adapt to multicultural
war82476_09_c09_285-318.indd 291 3/3/16 11:30 AM
diversity, including differences in language, religion, social
mores, and methods of conduct-
ing business. Training programs must be adapted to account for
differences in these factors
when working with others within the same company or with
members of other companies in
foreign countries.
Globalization also affects operational methods. Use of the
metric system rather than the tradi-
tional U.S. standards of weights and measures offers a small,
simple example. When working
with foreign countries, managers need to understand differences
in human resources prac-
tices, advertising and marketing programs, methods of
manufacturing, and many other ele-
ments of business practice. For example, did you know that the
use of coupons, while widely
accepted as being “frugal” in the United States, may indicate
lower class and status and there-
fore consumers in some other countries may not redeem them,

even when doing so would be
helpful?
Clearly globalization and the fast pace of business have forced
changes in many companies.
Even a factor such as shipping cost and speed now influences
the practice of business in many
companies. Leaders need to understand and account for these
factors.
What Do Companies Change?
It is one thing to say that companies make changes. It is another
to describe what actually gets
changed. Leaders of all types will be expected to understand the
kinds of changes that com-
panies make along with methods for making those changes. In
general, the nature of change
in a company takes the forms of the items noted in Table 9.3,
and can range from incremental
to transformational improvements.
Table 9.3: Company changes
Strategies, tactics, and plans
Processes
Culture
Organizational structure
Company technology
Jobs

Employees
Most notably, company leaders are expected to design and
implement changes at the strate-
gic, tactical, and operational levels. Many of the more
unplanned, revolutionary, and trans-
formational changes take place at the strategic level. Changes
such as product diversification
(new products and services); mergers, acquisitions, and
takeovers; vertical integration (tak-
ing over a new part of the marketing channel); and joint
ventures are strategies that involve
dramatic changes within the organization that leaders devise
and put in place. At the other
extreme, decisions to cut back, downsize, divest, or liquidate
part of a company’s operations
are also strategic changes that leaders must undertake.
war82476_09_c09_285-318.indd 292 3/3/16 11:30 AM
Tactics are efforts designed to support strategies. In 2015,
McDonald’s began selling breakfast
items throughout the day, a tactical decision designed to bolster
sales without changing the
company’s overall operations. Many changes with regard to
product improvements, advertis-
ing/marketing programs, and accounting practices are
implemented at the tactical level.
Company plans include changes such as alterations to a budget
or single-use plans, such as
remodeling a store or creating a different company name

(Domino’s instead of Domino’s
Pizza). Operational leaders often are in charge of changes that
affect lower-level employees.
In the case of Domino’s, someone was in charge of changing the
store’s internal and external
signage at each location while educating employees about what
to call the company when
dealing with customers.
Companies must also change organizational processes. The
decision-making process of
the organization, as well as how it solves problems, handles
conflicts, communicates with
and motivates its employees, and executes decisions may all
undergo alterations during the
change process. This, in turn, can transform organizational
culture by way of the values, prac-
tices, and general environment that is fostered by these
procedural changes.
Many corporations have undergone changes in organizational
structure over the past few
decades. The term “re-engineering” applies to structural
modifications that change the
authority/responsibility relationships present in companies.
Many strategies, such as adding
new products or entering international markets also dictate
changes in organizational struc-
ture (Chandler, 1962; Rumelt, 1974). Leaders provide the
guidance to these activities.
Technology can be a cause or an effect. A change in technology,
when dictated by outside
forces, becomes an effect. When a company develops, modifies,
or creates a new technology,
it will be the cause of change. Either way, leaders are at the

forefront. As an example, the
influence of technology on television programming has
reshaped professional sports. Now,
for instance, a person can order an NBA League pass through a
cable TV or satellite system,
which allows the individual to watch any game in any market
every night. Additional reve-
nues created by such technologies have raised funds, which
means teams can now pay players
greater sums of money and many players have chosen to
relocate to new employers (teams)
as a result. The influence of technology has generated a
dramatic effect on the entire opera-
tions of every team in the league.
Company leaders often dictate changes in the ways jobs are
performed. Job “redefinition” is
one example. A job, such as that of salesperson, may have
always been focused on “pioneering”
or finding new customers. At some point in time, when a solid
client list has been established,
the same job of salesperson becomes a “missionary” occupation
designed to maintain solid
relationships with customers rather than finding new buyers.
Many jobs have been changed
by new technologies. Think of an entry-level position, such as
secretary or administrative
assistant, and how much that job has changed due to new
technologies. Lower-level leaders
often direct such changes.
Employees are changed when someone is fired and someone else
is hired. A leader will be
responsible for such an action. Also, however, employees may
change when people are simply
moved around or reassigned. A quality leader may spot an

individual who is best suited to fin-
ish a certain task or solve a problem and may consequently
reassign people in order to serve
the needs of the company.
war82476_09_c09_285-318.indd 293 3/3/16 11:30 AM
In summary, leaders are required to make many types of
changes. The manner in which those
changes are made may vary, depending on the nature of the
situation. Part of the success of a
leader’s tenure will be determined by his or her ability to
inspire and produce changes at all
levels of the organization.
Self-Reflection Questions
1. Rate the five types of change in terms of their level of
“upheaval” as it
impacts low-ranking employees. Explain your ratings.
2. Identify the relationships between the factors that cause
companies to
change, as summarized by Table 9.3.
3. Describe how making changes to jobs and employees can be a
strategic, tacti-
cal, or operational change. Defend your answer.
Howard Schultz: A Return to Starbucks
In 1993, CNN published an article asking if Howard

Schultz, founder and CEO of Starbucks, has been the best
CEO ever (LaMonica, 2013). Indeed, his distinguished
career as an entrepreneur, leader, and activist would at
least deserve some consideration. It all began in 1981,
when Schultz first visited a Starbucks store. From his first
cup of Sumatra, he was drawn in and joined a year later.
As noted on the Starbucks website:
In 1983, Howard traveled to Italy and became
captivated with Italian coffee bars and the romance
of the coffee experience. He had a vision to bring
the Italian coffeehouse tradition back to the United
States—a place for conversation and a sense of
community. A third place between work and home.
He left Starbucks for a short period of time to start
his own Il Giornale coffeehouses and returned in
August 1987 to purchase Starbucks with the help
of local investors. From the beginning, Starbucks set out to be a
different kind of
company. One that not only celebrated coffee and the rich
tradition, but that also
brought a feeling of connection. (Starbucks, 2016, para. 4–5)
His dream was recognized and the company grew to epic
proportions. After leaving for
a time in 2000, Schultz concluded that the organization had
drifted off course through
overexpansion, a loss of the Starbucks experience in some
locations, the 2008 U.S. financial
crisis, and new competitors. Consequently, he returned to the
organization in 2008, directing
a series of major changes to renew the company, including
closing some area stores for 3 1/2
hours for employee retraining.
The emphasis on change worked. Starbucks has regained a

strong share of the market and
continues to grow. Its name remains part of the national
conversation. Schultz’s leadership
clearly opened the path to revitalization of the company.
Andrew Burton/Getty Images
Howard Schultz announced a
free college tuition program
for Starbucks employees in
2014.
war82476_09_c09_285-318.indd 294 3/3/16 11:30 AM
Changing
organization
begins
implementing
change
Refreezing
organization
makes the
changes
permanent
Unfreezing
organization
becomes
motivated
to change

Section 9.2 Models of Change Processes
9.2 Models of Change Processes
Process is a term used to describe how you do things, and
content is a term used to describe
what you do. The very important point to be made is that how
you do things is as important
as what you do. With regard to change, it means that leaders
need to be discerning both in
terms of what they change and how they change things. Even if
you change the right things,
the change is not likely to be successful if made the wrong way.
This section presents various
models of change processes including the approach developed
by Kurt Lewin, the Cummings
and Worley general model, the Kotter model, and appreciative
inquiry.
The Lewin Model for Change
More than 50 years ago social psychologist Kurt Lewin (1951)
developed what many con-
sider to be the first formal organization change model. To this
day, it remains the most written
about model on change and has become the prototype for many
other change models. Lewin
proposed a three-phase model of change, as you can see in
Figure 9.1.
Figure 9.1: The Lewin change model
Adapted from Lewin, K. (1951). Field theory in social science.
New York: Harper and Row.

Changing
organization
begins
implementing
change
Refreezing
organization
makes the
changes
permanent
Unfreezing
organization
becomes
motivated
to change
war82476_09_c09_285-318.indd 295 3/3/16 11:30 AM
Step 1 Step 2 Step 3 Step 4
Entering and
Contracting
Diagnosing
Planning and
implementing
Evaluating and
Institutionalizing

Unfreezing is the process of letting go of old ways of thinking
and doing things while creating
the motivation to change. Change usually involves altering or
radically adjusting currently
held behaviors, attitudes, perspectives, and practices. There are
many ways to do this such as
diagnosing the situation, presenting convincing data, educating
people, providing compelling
reasons for change, and developing a change team to guide the
change process.
Change or movement is the process of taking specific actions to
make needed changes. In this
phase, leaders show support for the changes, changes are
planned and implemented, and
people are empowered to get things done.
Refreezing is the process of following through on changes,
reinforcing and aligning everything
needed to support the desired changes, sustaining the changes,
and evaluating and learning
from the change process.
The Lewin model has been criticized for being a phased rather
than a dynamic model and for
being too simplistic for a world of complex change. However, it
provides an excellent concep-
tual model for understanding the change process.
The Cummings and Worley General Model of Planned Change
In the book Organization Development & Change Cummings
and Worley offer a four-step

approach to planned change (2015). The authors emphasize in
describing their model that
planned change is a joint process carried out by professionals
and organization members and
that the process is a dynamic rather than a linear process that
involves overlapping activities.
Figure 9.2 displays the four steps.
Figure 9.2: The Cummings and Worley general model of
planned
change
Cummings, T. G., & Worley, C. G. (2015). Organization
development & change. Samford, CT: South-Western College
Publishing,
a division of Cengage Learning.
Step 1 Step 2 Step 3 Step 4
Entering and
Contracting
Diagnosing
Planning and
implementing
Evaluating and
Institutionalizing
war82476_09_c09_285-318.indd 296 3/3/16 11:30 AM
In Step 1, someone has identified an issue or opportunity. Initial

data is gathered to explore
or understand the issue or opportunity further, and who would
be involved in the change pro-
cess is identified. Internal and/or external professionals would
likely be considered in Step 1,
and whether the organization decides to engage in a change
process, a contract or agreement
is made to engage in planned change.
Step 2 involves doing a thorough diagnosis of issues, or with a
positive change approach, col-
lecting stories about positive attributes in the organization.
Gathering, analyzing, and feeding
back data are the primary activities involved in this step.
Typically, information is gathered
regarding three levels of activity including individual, group,
and organizational issues. A
variety of diagnostic methods can be used, like surveys,
interviews, observations, and inter-
nal information that is available such as the organization’s
vision, mission, core values, and
goals or information on turnover and growth.
In Step 3, organizational members and practitioners jointly plan
and implement interven-
tions to make needed or useful improvements. Interventions
should be designed with the
vision and goals of an organization in mind. A skilled
practitioner considers several criteria in
helping design interventions such as the organization’s
readiness for change, the capabilities
for making desired changes, the alignment of the culture with
the desired changes, and the
level of change agent skills available. The practitioner will also
be aware of the need to build
support for change, keep those involved in the change engaged

and motivated, and sustain the
momentum for change.
Finally, in Step 4, sustaining changes becomes another critical
part of the change process.
Neglect in this important area will typically result in changes
underachieving the desired
results or regressing back to former behaviors and practices.
Consequently, changes need to
be evaluated so organization members can decide whether the
changes should be continued,
modified, sustained, or suspended. The term “institutionalizing
change” is used to describe
finding ways to support and reinforce the change and make sure
that it lasts as long as needed.
Kotter’s Eight-Step Process
Kotter’s model, which we discussed earlier in this text, was
presented in his book Leading
Change (1996). He later expanded his thoughts on the model in
his book co-authored with
Dan Cohen titled The Heart of Change (2002) in which he
introduced the idea of engaging
hearts as well as minds in the change process. In these works
change involves:
1. establishing a sense of urgency and a compelling reason to
make the change;
2. forming a power coalition to lead the change;
3. creating a new vision with supporting strategies;
4. communicating the vision to all employees;
5. empowering others to act on the vision, including
encouraging risk taking and
creativity;

6. planning for and rewarding short-term “wins” that move
toward the new vision;
7. consolidating improvements, reassessing changes, and
making adjustments; and
8. reinforcing the changes by showing the relationship to
organization success.
war82476_09_c09_285-318.indd 297 3/3/16 11:30 AM
Identify and
appreciate
the best
What will be
What might
be?
Visioning
What could be?
The Ideal
Appreciative
Topic
2.
Dreaming
4.
Delivering
3.
Designing

1.
Discovery
No matter which approach is used, managers should remember
that change is often an unset-
tling process. Expect individual employees to be uncomfortable
for a time.
Kotter’s model differs from the others in several ways. First, it
is primarily a model for chang-
ing whole organizations, although many of the steps would
apply to making changes of any
type and for any size group. It is also a model for making
transformational changes and not
smaller changes or improvements. The model offers a number of
unique approaches. It recog-
nizes the need to establish a sense of urgency for change and
compelling reasons for change.
Another unique step is creating a guiding coalition to manage
the change process. A guiding
coalition or change team may be implied in other models but
would be considered an option
rather than automatic step in the change process. Other unique
ideas include the importance
of seeking short-term wins and anchoring new approaches in the
culture.
Appreciative Inquiry
One newer approach to change management is appreciative
inquiry. Its roots began in the
early 1980s when David Cooperrider was a doctoral student
under the guidance of Suresh

Srivastva at Case Western Reserve University. In 1990,
Srivastva and Cooperrider edited a
book on the subject, and since that time others have followed,
one of which is a book edited
by Cooperrider, Sorensen, Yaeger, and Whitney entitled
Appreciative Inquiry: An Emerging
Direction for Organization Development (2001).
Appreciative inquiry focuses
on what an organization is doing
right, on creating images of what
is possible, and on finding inno-
vative ways to create the future.
While traditional change models
often focus on what is not work-
ing and how to make improve-
ments, AI chooses the positive as
the focus of inquiry. The assump-
tion is that inquiring into the
true, the good, the better, and
the possible will energize change
faster and better than discov-
ering and fixing what is not
working. The positive approach
to change is part of a growing
movement in the social sciences
called “positive organizational
scholarship,” which focuses on
positive dynamics in organiza-
tions that produce extraordinary
outcomes (Cameron, Dutton,
& Quinn, 2003). Appreciative
inquiry concentrates on four
steps, as displayed in Figure 9.3.
Figure 9.3: Four steps of appreciative

inquiry
Identify and
appreciate
the best
What will be
What might
be?
Visioning
What could be?
The Ideal
Appreciative
Topic
2.
Dreaming
4.
Delivering
3.
Designing
1.
Discovery
war82476_09_c09_285-318.indd 298 3/3/16 11:30 AM

In the discovery phase, individuals are interviewed to discover
positive elements of the orga-
nization or target of inquiry. An AI specialist or preferably
organizational members develop
an interview protocol to interview people about strengths, best
practices, accomplishments,
rewarding experiences, and what individuals or a group would
like to see happen more often.
The interviews are evaluated to determine common themes.
The dreaming phase shifts to dialogues about the future and
envisioning what the ideal could
be. Those involved develop “possibility propositions” that
present a truly exciting, provoca-
tive, and possible picture of the future. This phase is designed
to energize participants as they
are encouraged to dream big and new ideas begin to emerge.
In the designing phase, participants consider ideas for an
envisioned future and eventually
form a collective model of what the ideal for the future should
look like. They also consider
the actions it would take to get to the future.
In the delivering phase, a plan, execution strategy, and set of
goals is established to move the
organization to the envisioned future. The process then moves
to action and assessment with
the members making changes, assessing the results, and making
needed adjustments.
Successes using appreciative inquiry have been reported at the
individual, group, commu-
nity, organizational, and national levels (Browne & Jain, 2002;
Cooperrider, Whitney, & Stav-

ros, 2008; Kelm, 2005). Some of the companies that have
reportedly experienced successes
in using the approach include the British Broadcasting
Corporation, Canadian Tire, AVON
Mexico, and American Express (McShane & Von Glinow,
2015). Perhaps the most significant
accomplishment has been in influencing a greater emphasis on
the positive in planned change
efforts.
There have been, however, concerns expressed about this
approach. The method advocates
that portray “traditional planned change processes” as taking a
“deficit” approach that focuses
on problems and how to overcome them would be correct in
pointing out that this would be
a limited approach to change that overlooks the positive and
opportunities. Although most
approaches focus on strengths and weaknesses, current realities,
and future ideals, apprecia-
tive inquiry narrows in on the energizing effect of focusing on
the positive, and those who
prefer a more traditional approach would likely say that
overlooking realities and only focus-
ing on the positive could also be limiting.
Another concern focuses on the complexity of the approach and
the lack of agreement about
what is to occur in each step of the process. While leaders can
learn and practice the funda-
mentals of traditional change principles, it requires a trained
professional to guide the pro-
cess. An additional concern is identifying the conditions,
cultures, and leadership styles in
which the method would be a fit (Yaeger, Sorensen, &
Bengtsson, 2004; Bushe, 2011).

At the most general level, this positive approach has been
generally well received, although
there is not always agreement on some of the philosophical
assumptions. As with any
approach, appreciative inquiry is not always successful and
there are scholars who argue for
more empirical and longitudinal research of this method.
In summary, these four approaches to instituting change offer
value to leaders at every level
in an organization. They all focus on the future while seeking to
find ways to incorporate
war82476_09_c09_285-318.indd 299 3/3/16 11:30 AM
followers into the change process. Without follower
involvement, any change becomes much
more likely to fail. Table 9.4 summarizes the four models
discussed here.
Table 9.4: Comparison of steps in the planned change process
Action Research Cummings and Worley Kotter Appreciative
Inquiry
1. Identifying issues or
opportunities
1. Entering and
contracting

1. Establishing a sense
of urgency
1. Discovery (dialogu-
ing about strengths,
best practices, accom-
plishments, rewarding
experiences, the best of
what is)
2. Engaging a change
agent
2. Diagnosing 2. Creating the guiding
coalition
2. Dreaming (envision-
ing what might be)
3. Assessing present
realities and future
ideals
3. Planning and imple-
menting change
3. Developing a vision
and strategy
3. Designing (develop-
ing a collective image
of what should be and
exploring actions for
getting there)
4. Involving the appro-

priate people in evalu-
ating data and planning
changes
4. Evaluating and insti-
tutionalizing change
4. Communicating the
change vision
4. Delivering (plan-
ning and implementing
changes to accomplish
what will be, assess
results, make adjust-
ments, sustain changes)
5. Implementing the
desired changes
5. Empowering broad-
based action
6. Evaluating progress,
making needed adjust-
ments, and learning
from the process
6. Generating short-
term wins
7. Consolidating gains
and producing more
change
8. Anchoring new

approaches in the
culture
1. Do you think the three-step model of unfreezing, change, and
refreezing is as
simple as it sounds? Explain your answer.
2. Does the term “unfreezing” apply to the other three models of
change
described in this section? If so, how? If not, why not?
3. Compare the eight steps in the Kotter approach to change
with the four steps
of appreciative inquiry, explaining similarities and differences.
war82476_09_c09_285-318.indd 300 3/3/16 11:30 AM
Change Agent
A person who is a
specialist in managing
change and developing
high-performance
organizations, teams, and
individuals.
Change Leader
A person in a leadership
position who can

significantly influence
the success or failure of
a change effort and
provide the support
and the leadership
necessary for change
to succeed.
Change Champion
A person who initiates and champions needed changes. An
organization needs to develop change champions at all levels of
the
organization. However, it is particularly important to have
change
champions at the top.
Change Team
A team that is responsible
for planning, managing,
monitoring, and
championing a change
effort.
Change Supporter
A person who supports
needed changes in

attitude and actions, offers
valuable assistance in
accomplishing change,
and encourages the
change agents, leaders,
and change champions.
Section 9.3 Leadership and the Management of Change
9.3 Leadership and the Management of Change
Planned change is the process of using sound change principles
and knowledge to plan and
implement changes. A quality program significantly increases
the probability of successful
change. Planned change should be a dynamic process of
planning, implementing, adapting
to changing conditions, and making needed adjustments.
Leadership plays a key role in the
planned change process. This section presents some of the
primary concepts associated with
planned change. First, we examine the various roles associated
with managing change. Next,
the nature of action research is described.
Roles in Managing Change
Five key roles become part of managing change (see Figure
9.4). The change leader is the
person who provides the support and direction necessary for
change to succeed. Change
leaders are a major key to success. When they clearly advocate
for the change and assure that
a sound process will be used to make it, the probability of

success rises. Conversely, when
they are not clearly supportive of the change or do not
understand what it takes for the new
course of action to be carried out, there is a much lower
probability of success.
Figure 9.4: Five key roles in managing change
Change Agent
A person who is a
specialist in managing
change and developing
high-performance
organizations, teams, and
individuals.
Change Leader
A person in a leadership
position who can
significantly influence
the success or failure of
a change effort and
provide the support
and the leadership
necessary for change
to succeed.
Change Champion

A person who initiates and champions needed changes. An
organization needs to develop change champions at all levels of
the
organization. However, it is particularly important to have
change
champions at the top.
Change Team
A team that is responsible
for planning, managing,
monitoring, and
championing a change
effort.
Change Supporter
A person who supports
needed changes in
attitude and actions, offers
valuable assistance in
accomplishing change,
and encourages the
change agents, leaders,
and change champions.
war82476_09_c09_285-318.indd 301 3/3/16 11:30 AM

The change agent is a specialist in managing change and
developing healthy, high- performance
organizations. In a broad sense, a change agent could be any
person in any type of endeavor
who causes major changes. In the context of change
management, change agents are internal
or external professionals who provide special expertise in
building healthy, high-performance
organizations and in managing the change process. They may be
responsible for planning and
implementing changes or for helping others plan and implement
changes. They are used pri-
marily for major changes but are not needed for all changes.
Many midsize to large organiza-
tions have internal change agents in a human resources
department or have access to one or
more outside consultants who specialize in organization
development. In today’s times of
dynamic change, having or having access to a skilled
organization development and change
specialist can be invaluable to the success of an organization.
Some of the larger organizations
that have used organization development change professionals
include General Electric, Kai-
ser Permanente, DuPont, Intel, Boeing, Procter & Gamble,
Microsoft, and IBM.
The change champion is a person at any level of an organization
who champions the process
(Warrick, 2009). Change champions come from leadership or
nonleadership roles. The indi-
vidual could be the person who initiates a change, makes sure a
change gets accomplished, or
both. Every change needs a change champion. Without someone

responsible for accomplish-
ing a change, it will often not survive or will result in
undesirable outcomes. Depending on
the change involved, change champions may work with or
without a team in accomplishing
changes.
Change team members work with change agents or change
champions to help plan, manage
(implement), and monitor changes. Change teams are also
sometimes called a “guiding coali-
tion.” If the members are carefully chosen, change teams can be
a powerful force in making
changes successful. The members should ideally be respected
and influential people who are
in the best position to plan and manage the change. They may
have expertise or ideas needed
by the team, or they may represent parts of the organization that
the change will impact. As
much as possible, it can also be helpful to have at least one
member on the team who is at a
senior level or has influence at a senior level so the team will
be taken seriously and can make
decisions without the constant approval and second guessing of
others above the team.
A change supporter is any person who clearly endorses a change
and offers assistance or
influence in accomplishing it. Building support for change,
especially from people who can
influence the success or failure of change, is a critical part of
the change process, as support
creates momentum for change and a lack of support can slow
down or kill change.
Action Research

Action research is the fundamental model used in almost all
planned change processes. In
addition to developing the three-stage change process, Kurt
Lewin also created the action
research concept. The basic concept involves identifying issues
or changes, gathering data
regarding issues or changes, feeding the data back to the
appropriate people, and involving
those people in evaluating the data and planning actions. It
includes engaging a change agent
or change champion to guide the process along with evaluating
the progress, making needed
adjustments, and learning from the process.
war82476_09_c09_285-318.indd 302 3/3/16 11:30 AM
Action research makes a number of unique contributions
regarding how change should be
managed. First, it is a data-driven process. Changes are
typically made by a person or team
based on what is assumed to be the real issues or opportunities.
Action research is based on
gathering data to identify reality before treating what is
assumed to be reality. This sends a
powerful message to leaders to learn to check out reality before
jumping to conclusions and
launching changes that are at best addressing symptoms and at
worst addressing the wrong
issues or opportunities altogether.
A second unique contribution is having a person knowledgeable

about change lead, guide, or
facilitate the change process. This could be a change agent who
is trained in change manage-
ment or a change champion who is knowledgeable of at least the
fundamentals of managing
change.
A third feature is involving the
appropriate people in the change
process. This is a departure from
how typical change decisions are
made with a leader or small group
of people such as an executive
team making most of the change
decisions with little or no input
from those closest to the change,
most knowledgeable about the
changes needed, most impacted
by the change, or assigned to
implement the change. In action
research, the appropriate people
are involved in evaluating rel-
evant data and helping plan and
implement changes.
A fourth feature is learning from the change process. Seldom is
time taken to evaluate whether
changes resulted in the desired outcomes nor is time taken to
learn from the change process
and to pass on what was learned to others.
The action research approach to change is always evolving into
new applications and adapt-
ing to changing times. For example, in a fast-moving
environment with greater time pressures
and demands for results, action research needs to develop faster

methods and focus more on
visible and measurable results. Some of the more recent
applications include using action
research on a global basis; adapting methods to different
cultures; using action research to
address large-scale changes and social, political, and
community issues; and an even greater
emphasis on the involvement of organization members in all
phases of the change process
rather than relying predominantly on professional change agents
(Shani, Mohrman, Pasmore,
Stymne, & Adler, 2007).
Purestock/Thinkstock
A key feature of action research is involving the appro-
priate people in the change process.
war82476_09_c09_285-318.indd 303 3/3/16 11:30 AM
Systems Thinking
Leaders are not typically trained to look at the implications of
change before making changes.
Systems thinking helps leaders think through change from a big
picture perspective. Systems
thinking involves looking at the entire organizational system
and its interacting parts when
considering changes. It recognizes that a change in one part may
have intended or unintended
consequences in other parts.

An example of systems thinking would occur as a company
considers making changes in its
primary technology. When company leaders view such a change
from a systems perspective,
they may discover how the change will affect the manner in
which employees relate to one
another and get things done.
Another example takes place when changing a reward system to
encourage the sales force to
increase business through individual incentives. The new reward
system may yield an unin-
tended consequence that could be simultaneously discouraging
teamwork.
Systems thinking assists leaders as they think through the
impact of a change on the organi-
zation and the impact of the organization on the change. For
example, it may be desirable to
encourage more teamwork only to discover from a systems
perspective that the organization
is not presently designed to value and reward teamwork.
Leaders may need to make changes
in the system to align the system with the desired new approach
or method of operation.
An Integrated Change Model
Based on the extensive knowledge available regarding planned
change, the question is: What
are the basic fundamentals that leaders (and change champions
as well) need to know about
planned change? Most of the fundamentals can be understood
by: (1) adopting a sound change
model that includes the stages of change and steps in the change
process that are part of each

stage; (2) providing a change checklist that guides leaders in
thinking through the stages of
change and steps in the change process; and (3) creating an
action planning form that lead-
ers can use in planning changes. Figure 9.5 provides an example
of a change model, and a
checklist is located in the Leadership Applications and Tools
section at the end of this chapter.
Ideally an existing or developed planned change model should
include the big picture three
stages of change and the steps in the change process. Lewin’s
three-stage model of unfreez-
ing, changing, and refreezing is a good place to start in
considering models. The model pro-
vided in Figure 9.5 builds on the Lewin model but uses different
terms to be more reflective
of today’s times of dynamic change. For example, in Stage 1,
change is not just about unfreez-
ing old behaviors. It can also involve making improvements,
learning from the best practices
of others, and envisioning new and better ways of doing things
that may or may not require
unfreezing old behaviors. The three stages of change are
preparation, implementation, and
transition. Arrows flow back and forth between stages to reflect
the dynamic nature of
change.
Figure 9.5: A planned change model
Adapted from Warrick, D.D. “Launch, Assessment, Action
Planning, and Implementation.” From (Ed.) Rothwell, W.J.,
Stavros, J.M., Sullivan,
R.L., Sullivan, A. Practicing Organization Development, 3rd
edition. Published by Pfeiffer. © 2009 John Wiley & Sons.

Stage I
Preparation
Stage II
Implementation
Stage III
Transition
Step1
Exploring
Step 2
Diagnosing
and Planning
Step 3
Building
Commitment
Step 4
Managing
Change
Step 5
Sustaining
Step 6
Evaluating
and Planning
Step 7

Learning
war82476_09_c09_285-318.indd 304 3/3/16 11:30 AM
Stage I
Preparation
Stage II
Implementation
Stage III
Transition
Step1
Exploring
Step 2
Diagnosing
and Planning
Step 3
Building
Commitment
Step 4
Managing
Change
Step 5
Sustaining
Step 6

Evaluating
and Planning
Step 7
Learning
Systems Thinking
Leaders are not typically trained to look at the implications of
change before making changes.
Systems thinking helps leaders think through change from a big
picture perspective. Systems
thinking involves looking at the entire organizational system
and its interacting parts when
considering changes. It recognizes that a change in one part may
have intended or unintended
consequences in other parts.
An example of systems thinking would occur as a company
considers making changes in its
primary technology. When company leaders view such a change
from a systems perspective,
they may discover how the change will affect the manner in
which employees relate to one
another and get things done.
Another example takes place when changing a reward system to
encourage the sales force to
increase business through individual incentives. The new reward
system may yield an unin-
tended consequence that could be simultaneously discouraging
teamwork.

Systems thinking assists leaders as they think through the
impact of a change on the organi-
zation and the impact of the organization on the change. For
example, it may be desirable to
encourage more teamwork only to discover from a systems
perspective that the organization
is not presently designed to value and reward teamwork.
Leaders may need to make changes
in the system to align the system with the desired new approach
or method of operation.
An Integrated Change Model
Based on the extensive knowledge available regarding planned
change, the question is: What
are the basic fundamentals that leaders (and change champions
as well) need to know about
planned change? Most of the fundamentals can be understood
by: (1) adopting a sound change
model that includes the stages of change and steps in the change
process that are part of each
stage; (2) providing a change checklist that guides leaders in
thinking through the stages of
change and steps in the change process; and (3) creating an
action planning form that lead-
ers can use in planning changes. Figure 9.5 provides an example
of a change model, and a
checklist is located in the Leadership Applications and Tools
section at the end of this chapter.
Ideally an existing or developed planned change model should
include the big picture three
stages of change and the steps in the change process. Lewin’s
three-stage model of unfreez-
ing, changing, and refreezing is a good place to start in
considering models. The model pro-

vided in Figure 9.5 builds on the Lewin model but uses different
terms to be more reflective
of today’s times of dynamic change. For example, in Stage 1,
change is not just about unfreez-
ing old behaviors. It can also involve making improvements,
learning from the best practices
of others, and envisioning new and better ways of doing things
that may or may not require
unfreezing old behaviors. The three stages of change are
transition. Arrows flow back and forth between stages to reflect
the dynamic nature of
change.
Figure 9.5: A planned change model
Adapted from Warrick, D.D. “Launch, Assessment, Action
Planning, and Implementation.” From (Ed.) Rothwell, W.J.,
Stavros, J.M., Sullivan,
R.L., Sullivan, A. Practicing Organization Development, 3rd
edition. Published by Pfeiffer. © 2009 John Wiley & Sons.
Stage I
Preparation
Stage II
Implementation
Stage III
Transition
Step1
Exploring
Step 2
Diagnosing

and Planning
Step 3
Building
Commitment
Step 4
Managing
Change
Step 5
Sustaining
Step 6
Evaluating
and Planning
Step 7
Learning
Preparation
In the preparation stage, leaders take specific steps to prepare
the organization for change.
Unfortunately, some leaders overlook this stage because they
are eager to start and get things
done. Effective leaders note that time that is invested wisely in
preparing the organization
for change will accelerate the process and will often make the
difference in success or failure.
The first two steps in the preparing stage, exploring along with
diagnosing and planning, are
similar to most planned change models. Efforts are made to

identify possibilities for change,
the appropriate people are involved in leading and managing the
change, and a commit-
ment is made to proceed with the change process. The third
step, building commitment, is an
important addition to traditional models. When key people are
committed to the change and
the change process, the probability for successful change will
be high. When efforts are not
made to build commitment, changes are likely to meet
resistance and obstacles that will slow
down or undermine changes.
Implementation
The implementation stage involves effectively managing the
change process. Typically, a
change agent or change champion will oversee the
implementation stage, often with the help
of a change team. This includes involving the appropriate
people in planning and implement-
ing changes; arranging for any education and training needed to
successfully implement the
changes; keeping people informed, focused, and engaged in the
change process; and building
in reliable feedback mechanisms to monitor and manage the
change process. This last activ-
ity of building in reliable feedback mechanisms is particularly
important to successful change
efforts. When a leader does not receive effective feedback
during the process, the change can
be ineffective or even counterproductive. Obtaining regular
honest information during prog-
ress makes it possible to make timely and needed adjustments.
war82476_09_c09_285-318.indd 305 3/3/16 11:30 AM

Transition
The transition stage is critical. Without it, changes are not
likely to be sustained. Leaders
may waste considerable time, effort, and resources by not
investing in Stage 3 of the change
process. The first step in the transition stage is to make
provisions for sustaining changes.
Leaders should recognize and, where appropriate, reward those
involved in the change pro-
cess, as well as inform people about what has been
accomplished. The major key to sustain-
ing changes is to assure that there is a champion assigned to
maintain, modify, or redirect the
changes and that any needed adjustments are made to align the
organization to support the
change.
The second step is evaluating and planning, meaning that
depending on what is needed, some
level of a diagnosis is made to evaluate progress and the change
process and use the informa-
tion to make any needed plans for the future. The third step is a
learning activity designed to
learn from the change process and use the information for
planning future changes. Curiously,
often leaders do little to evaluate successes and things that
could have been done differently
or better, and to make sure that what has been learned is used in
the future. Organizations
that take the time to learn from the change process can become
highly skilled at managing
change.

Providing a Change Checklist
A planned change checklist that describes each step under each
stage in the change process
makes it possible for leaders and change champions throughout
the organization to plan and
manage most change processes even though they have not had
the specialized training of
a change agent. The checklist should be used as a guide in
planning and managing change
rather than a rigid list of activities.
Creating a Change Action Planning Form
The final fundamental item that leaders need to make changes is
a change action planning
form. Once leaders have a change model and checklist to
understand what needs to be done
for changes to have a high probability of success, the next step
is to plan the change. This
approach is based on another concept developed by Kurt Lewin
called force field analysis.
Finally, leaders develop a plan for each stage of the change
process. The appropriate people
should be involved in the planning process.
In summary, developing skills in managing change requires far
more than learning and apply-
ing a little knowledge about change. It requires a sound
philosophy about managing change
that can be applied to the myriad situations in which change is
involved. Leaders are critical
to the success or failure of changes. It is important to
understand the roles they can play in
the change process (Shirey, 2013; Lutz, Smith, & Da Silva,
2013). When leaders understand
the change process and provide the leadership and support

needed for changes to succeed,
the probability of success becomes much higher, the change
process will be accelerated, there
may not be as much resistance to change, and there will be a
stronger incentive to be engaged
in the change process.
war82476_09_c09_285-318.indd 306 3/3/16 11:30 AM
O. P. Bhatt: Committing to Change
The State Bank of India, dating back to 1806, was the
largest bank in India in terms of assets. Unfortunately,
the aging bank was starting to yield market share to
more customer-oriented, sophisticated, tech-savvy
private banks. When O. P. Bhatt, a lifetime employee
at the bank, was appointed chairman, he was alarmed
at the shrinking market share and lack of motivation
in the 200,000-plus workforce. He committed to
transforming the large bank. He began by talking
to senior executives in small groups to get them
committed to changing the bank.
Bhatt then invited the top 25 executives to a 5-day concave
where they were asked to
generate ideas for transforming the bank. They concluded with a
14-point agenda that
focused on how to improve the business and how to get people
energized and committed to
transforming the bank.
Planned change was once the domain of professionals in

organization development and
change management. It was a process used primarily for major,
and often organization-wide,
changes. Eventually it became evident that organization
development and change methods
could be used at all levels of an organization for all types of
development and change issues.
While some changes clearly need the expertise of internal or
external change agents, or a
combination of both, many do not. The planned change process
can be used for big and small
changes and changes of all types, such as changing a whole
organization or team or making a
technological, process, system, or structural change.
We have now entered a time of dynamic change when it makes
sense to train leaders and
change champions throughout the organization in the
fundamentals of planned change. Lead-
ers are in the most strategic position to make and manage or
mismanage needed changes.
Their skills or lack of skills regarding change efforts could be
the difference between the well-
documented 70% or more change failure rate or a more likely
70% or more success rate,
and they could have a significant impact on the success or
failure of organizations. Training
change champions throughout the organization in the
fundamentals of planned change could
also increase the probability of successful change, as skills in
planned change are needed at
all levels of an organization.
1. Rate the degree of leadership involved (from minor to major

roles) in each of
the five roles played in the change process.
2. How could the concepts present in action research be applied
to the systems
thinking process? Explain your answer.
3. How do the concepts present in the systems thinking process
apply to the
integrated change process model presented in this section?
(continued)
war82476_09_c09_285-318.indd 307 3/3/16 11:30 AM
Section 9.4 Additional Challenges
9.4 Additional Challenges
Many factors will affect the future of planned change and the
field of organization develop-
ment—the primary discipline that studies planned change.
Globalization, technology, and the
demand for accelerated and documented results will influence
the methods that are used, the
way planned change is delivered, and how results are measured
(Sorenson, Head, Mathys,
Preston, & Cooperrider, 1995). For example, technology
provides new ways of diagnosing
organizations and makes it possible to manage some change
processes in cyberspace as well
as face to face. The interest in worldwide research on change is
growing and change manage-
ment is becoming a popular topic at academic and professional

conferences. Two additional
challenges in the area of change leadership remain: (1)
instituting change in cross-cultural,
international settings, and (2) overcoming resistance to change.
Cross-Cultural/International Settings
Global and cultural boundaries can make the formulation and
implementation of change
strategies, tactics, and plans much more difficult. Factors that
keep companies from making
alterations to any course of action include mistrust, differences
in cultural values, and eth-
nocentrism. Whenever employees in one country work with
those in another, the potential
for mistrust evolves. Mistrust can evolve from past
disagreements between national leaders
or current debates about international policies. Many
international trade agreements result
in backlash from various groups, and the mistrust can easily
become part of the thinking in
specific companies.
Differences in cultural values are present due to varying
religions and ethical mores among
countries. As noted previously, charging interest is considered
harmful in some Islamic
countries; bribery is an accepted, tax-deductible practice in
others (yet illegal in the United
States). Language barriers can further inspire distrust and
misunderstanding when changes
are about to be made.
O. P. Bhatt: Committing to Change (continued)
A plan was developed and the 10,000 branch managers trained

on the plan and how to
involve and engage people throughout the organization in the
change process. The chairman
set a target of 100 days to involve all 200,000 employees in the
change program, which was
named “Parivartan” (meaning transformation).
In workshops, employees were asked to participate in creating a
new vision statement for
the bank and develop ideas in response to questions such as:
What is SBI’s biggest challenge?
What can give SBI the winning edge? What should SBI be
famous for?
The change process resulted in a remarkable turnaround of the
bank in terms of business,
customer service, and employee morale and engagement (Gupta,
2012).
war82476_09_c09_285-318.indd 308 3/3/16 11:30 AM
Ethnocentrism is the belief that one’s culture and national
practices are superior to others.
The pattern of thinking can be extremely disrupted when a
company doing business in one
country seeks to make changes in subsidiaries in other nations.
The question becomes how
to respond.
In many ways planned change is ideally suited for worldwide,
cross-cultural applications.
Change occurs everywhere around the globe and sound change

practices are needed no mat-
ter what the culture is or what type of changes need to be made.
The diagnostic emphasis
of planned change is particularly applicable to cross-cultural
change, as assessments should
reveal any unique issues that need to be taken into account in
the change process. The col-
laborative nature of planned change is a strength of using the
process on a global basis.
Collaboration generates buy-in and commitment, makes it
possible for concerns to be
addressed, and creates momentum for change. Another cross-
cultural strength is the empha-
sis on the importance of involving leaders in the process and of
keeping leader involvement
positive and helpful. This builds trust and confidence in the
change process.
Resistance to Change
When a change is announced, some employees are likely to
avoid involvement or resist it.
Toffler (1970) noted that people exhibit a natural tendency to
resist change. Employees resist
change for a variety of more or less logical reasons. Among the
more common rationales are
those you see in Table 9.5 (Kotter & Schlesinger, 1979):
Table 9.5: Reasons employees resist change
Self-interest
Lack of understanding
Lack of trust in management

Differing assessments of the need for change
Low tolerance for change
Organizational inertia
Based on John P. Kotter and Leonard A. Schlesinger (1979).
Choosing strategies for change, Harvard Business Review,
March-April.
Employees resist change for reasons of self-interest when they
realize that levels of power,
money, prestige, job security, and personal convenience are at
stake. The sunk costs doctrine
suggests that over time, a person’s investment in a company
escalates, as pension funds accu-
mulate and the person’s allowed vacation time rises, along with
growth of the chance for
being promoted or enjoying the benefits of seniority. These
investments may in turn drive
resistance to change as the employee seeks to maintain the
status quo. (Patti, 1974).
Resistance can also be based on simply not understanding why a
change has become neces-
sary, such as when an employee who does not use social media
does not understand why
monitoring comments on its Facebook page would be a good
idea for a company.
war82476_09_c09_285-318.indd 309 3/3/16 11:30 AM

At times employees do not trust management’s motives, in
essence thinking or asking, “What
are they really up to when they asked for this change?”
Differing assessments of the need for
change occur when employees do not view a change as
necessary, as managers and employ-
ees do not see eye to eye on the nature of the issue. Those with
a low tolerance for change also
tend to be resistant.
Organizational inertia is the systematic resistance to change that
is present in many com-
panies. Various processes and structures, when combined with
the efforts of individuals who
do not want changes to be made, can prevent a company from
creating or implementing a
much-needed new course of action. Leadership involves
identifying organizational inertia
and pushing for ways to overcome it.
Resistance to change can discourage, undermine, or slow down
change. Leaders make many
assumptions about resistance. Some feel that people just
naturally resist change, others label
resisters as “trouble makers,” and leaders often view resisters as
irrational people who get in
the way of needed changes. Still, resistance can indeed
undermine the change process. What
leaders often do not realize is that by not addressing what most
would consider unwarranted
resistance, leaders lose the confidence of their followers. Also
remember, however, that there
are times in which resistance can be warranted. Consequently,
leaders should carefully evalu-
ate the merits of any resistance.

Overcoming Resistance to Change
Some authors have challenged using the term “overcome
resistance” because it assumes that
the right changes are being made in the right way and resistance
needs to be overcome (Dent
& Goldberg, 1999). In the context of this chapter, we approach
overcoming resistance from
the perspective that effectively designing and managi ng changes
minimizes the natural resis-
tance that comes from poorly managed change and that
resistance should be dealt with con-
structively and considered in change decisions. Table 9.6
provides alternatives for overcom-
ing resistance to change (Kotter & Schlesinger, 1979).
Table 9.6: Overcoming resistance to change
Strategy Example
Education and communication Explain the necessity for change
and answer
questions
Participation and involvement Engage workers in making the
change
Facilitation and support Carefully plan the change and carry out
the plan
Negotiation and agreement A bargaining approach
Manipulation and cooptation A political approach
Explicit and implicit coercion

Adapted from Kotter, J. P., & Schlesinger, L. A. (1979, March–
April). Choosing strategies for change. Harvard Business
Review, p.
111.
war82476_09_c09_285-318.indd 310 3/3/16 11:30 AM
Chapter Summary
Note that managers choose from these strategies based on the
nature of the change. The greater
the degree of change, the larger the number of tactics leaders
will employ. We should point out
that if after listening to resistance, considering legitimate
concerns, and creating opportunities
for involvement, there is continued resistance that may be
undermining the change process,
the resistance should be addressed. Even one influential person
who strongly resists change
can significantly damage the change process and the credibility
of those leading change.
In summary, in a world of ever-increasing change, leading with
skills in managing change constitutes
significant factors in the successes or failures of organizations.
Every leader needs to make develop-
ing skills in managing change a high priority in his or her skill
set. As reported in this chapter, few
leaders are trained in managing change and the result has been a
high failure rate of changes with
far-reaching consequences to organizations, the people in them,
and the leaders leading changes.
There is good news, however. Managing change is a learnable

skill that leaders can develop,
and by doing so, leaders can add considerable value to what
they do and to the organizations
and people they serve. It should be apparent from the examples
presented above and from
worldwide research reported on change efforts that planned
change principles can be applied
to multiple situations and cultures. Planned change is being
applied internationally, in busi-
nesses and organizations of all types and sizes; in local, state,
and federal governments; in
communities; in the military; and in schools and many other
endeavors.
1. How would you respond to a subordinate who clearly
exhibited ethnocen-
trism and was resistant to a change you had been asked to
implement in an
international setting?
2. As a manager/leader, which of the five reasons employees
give for resisting
change, as shown in Table 9.5, would be the easiest to fix?
Which would be
the hardest? Explain your response.
3. A manager without power loses three of the options for
overcoming resis-
tance to change, as shown in Table 9.6. Which three? Explain
your answer.
Chapter Summary
The Nature of Organizational Change

Changes can come in many forms. The major types of changes
made in companies are:
• planned;
• unplanned;
• evolutionary;
• incremental; and
• transformational.
war82476_09_c09_285-318.indd 311 3/3/16 11:30 AM
Chapter Summary
Forces that cause organizations to change include internal
factors (growth, crisis, oppor-
tunity), external factors (political forces, social forces,
economic forces, competition), and
technological factors that are both internally and externally
generated. Company leaders
institute changes in the areas of:
• strategies, tactics, and plans;
• organizational structure;
• company technology;
• jobs; and
• employees.

Models of Change Process
Four models of change processes include the approach
developed by Kurt Lewin, the Cum-
mings and Worley general model, the Kotter model, and
appreciative inquiry. The Lewin
model describes unfreezing, change or movement, and
refreezing. The Cummings and Wor-
ley model consists of four steps: entering and contracting,
diagnosing, planning and imple-
menting, and evaluating and institutionalizing. The Kotter
model is an eight-step process
that builds on the Lewin model. Appreciative inquiry involves
the steps of discovery, dream-
ing, designing, and delivering by focusing on what the
organization does well.
Leadership and the Management of Change
Five key roles become part of managing change:
• change agent;
• change leader;
• change champion;
• change team; and
• change supporter.
Action research involves identifying issues or changes,
gathering data regarding issues or
changes, feeding the data back to the appropriate people, and
involving those people in
evaluating the data and planning actions. Systems thinking
means looking at the entire orga-

nizational system and its interacting parts when considering
changes.
The three stages of an integrated change process are
transition. This process includes providing a change checklist
and creating a change action
planning form.
war82476_09_c09_285-318.indd 312 3/3/16 11:30 AM
Key Terms
Additional Challenges
Factors that keep companies from making alterations to any
course of action include mis-
trust, differences in cultural values, and ethnocentrism.
Individuals resist change for many
reasons, including self-interest, lack of understanding, lack of
trust in management, differing
assessments of the need for change, low tolerance for change,
and organizational inertia.
Managers seek to overcome resistance through:
• education and communication;
• participation and involvement;
• facilitation and support;
• bargaining;
• manipulation and cooptation; and

• explicit and implicit coercion.
Leadership involves making changes. Effective leaders diagnose
problems, situations,
opportunities, and trends and then respond accordingly.
Key Terms
action research The fundamental model
used in almost all planned change processes;
involves identifying issues or changes, gath-
ering data regarding issues or changes, feed-
ing the data back to the appropriate people,
and involving those people in evaluating the
data and planning actions.
appreciative inquiry Focuses on what
an organization is doing right, on creating
images of what is possible, and on finding
innovative ways to create the future.
ethnocentrism The belief that one’s cul-
ture and national practices are superior to
others.
evolutionary change Slow-developing
unplanned changes that occur with little
action by leaders.
incremental change Planned changes
designed to result in improvements in an
organization or to respond to internal or
external events.
organizational inertia The systematic
resistance to change that is present in many
companies.

planned change Those changes made
intentionally that require a purpose and a
plan to execute.
systems thinking Involves looking at the
entire organizational system and its interact-
ing parts when considering changes.
transformational change The planned
events that result in major differences in the
way things are done.
unplanned change A change that naturally
evolves or occurs in response to internal or
external events, or that is made with little
if any consideration given to planning the
change.
war82476_09_c09_285-318.indd 313 3/3/16 11:30 AM
Leadership Applications and Tools
Leadership Applications and Tools
Leadership Exercises
1. The 2008 recession forced many companies to quickly adapt
to entirely new economic
circumstances. What type of change—planned, unplanned,
evolutionary, incremental,
or transformation—do you believe would offer the most value to
leaders in a situation
such as that?

2. The shaving industry has encountered a change in the
landscape. Dominant firms
including Gillette and Schick have witnessed new, smaller
companies chipping away at
markets. One firm sells the Head Blade, which is a curved razor
specifically designed
for men who enjoy the bald look. Another sells a blade designed
to last for an entire
year. Another company offers razors and blades at substantially
lower prices via
the Internet. If you were the manager of Gillette or Schick,
which of the five types of
change explained in this chapter would you implement to
respond to these new forces?
Explain your answer in detail.
3. The U.S. military has been considering changes to the roles
women play as part of the
armed forces, including serving in combat roles. Use the Lewin
model of change to
explain how a new policy to allow women to serve in direct
combat would be imple-
mented, noting the resistance doing so might encounter in the
ranks of officers and
enlisted personnel.
4. Willis is the manager who oversees the human resources
department in a major retail
store. The recent Supreme Court decision regarding same sex
marriage influences
several activities in his department, including methods of
setting up health insurance,
notifications of whom to contact in case of emergency, and even
questions that might
be asked as part of the selection and promotion process. He

decides to establish a task
force in charge of implementing all changes and new policies or
practices related to
same sex marriages by employees. Use the five roles played as
part of the change pro-
cess to explain how the task force would proceed.
5. Many firms that conduct business in other countries
encounter ethnocentrism in both
the home country and the host country. In other words, people
in the home company
believe their methods and culture are better; people in the
nation where the company
has expanded believe their methods and culture are better. Use
the principles for insti-
tuting change in a planned fashion to explain how you intend to
reduce ethnocentrism
and make people on both sides of the border more open to ideas
and practices used on
the other side.
6. Marjorie is the manager of a chain of five restaurants
operating in the city of Seattle.
Four of the five locations are doing exceptionally well. The
fifth, however, suffers from
a poor reputation based on lax employee attitudes, leading to a
less-than-clean facil-
ity (especially in the bathrooms), poor customer service,
complaints about food qual-
ity, and problems with workers arriving on time for shifts. She
has decided to fire the
entire staff, including the restaurant manager, and then give
every employee an appli-
cation form. Which of the methods available to overcome
resistance to change do you
believe Marjorie should incorporate into her actions?

DescriptionTotal Possible Score 8.00Defines Each TheoryT

DescriptionTotal Possible Score 8.00Defines Each TheoryT

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