Management of change

1. Managing Change
Module 10
LIS 580: Spring 2006
Instructor- Michael Crandall

2. April 27, 2006 LIS580- Spring 2006 2
Roadmap
• The context
• What is organizational change?
• Processes for managing change
• People and change
• Organizational Development
• Conflict resolution
• Fostering innovation

3. April 27, 2006 LIS580- Spring 2006 3
Ghoshal & Bartlett
• Old values: compliance, control, contract and
constraint
• New values: discipline, support, trust and stretch
• Successful change involves simplification, integration,
and regeneration
• Phased approach essential, along with focus on
people’s attitudes, assumptions and behaviors
• Brings both organizational design and human
resources lessons to bear
• Ghoshal and Bartlett provide a high-level model for
change, let’s look at some of the details and lessons
learned at a more granular level

4. April 27, 2006 LIS580- Spring 2006 4
What is Organizational Change?
• An alteration of an organization’s
environment, structure, culture,
technology, or people
– A constant force
– An organizational reality
– An opportunity or a threat
• Change agent
– A person who initiates and assumes the
responsibility for managing a change in an
organization

5. April 27, 2006 LIS580- Spring 2006 5
Basic Questions for Change
Agents
• What are the forces acting upon me?
– What are the pressures I should take into
consideration as I decide what to change
and how I should change it?
• What should we change?
– Should the changes be strategic and
companywide or relatively limited?
• How should we change it?
– How should we actually implement the
change?
G.Dessler, 2003

6. April 27, 2006 LIS580- Spring 2006 6
Forces for Change
External Forces Internal Forces
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude
Prentice Hall, 2002

7. April 27, 2006 LIS580- Spring 2006 7
Three Categories of Change
Organizational Culture
Prentice Hall, 2002

8. April 27, 2006 LIS580- Spring 2006 8
Model for Planned Organizational
Change
FIGURE 8–1Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,
pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003

9. April 27, 2006 LIS580- Spring 2006 9
Two Views of the Change
Process
• “Calm waters” metaphor
– A description of traditional practices in and
theories about organizations that likens the
organization to a large ship making a
predictable trip across a calm sea and
experiencing an occasional storm
• “White-water rapids” metaphor
– A description of the organization as a small
raft navigating a raging river
Prentice Hall, 2002

10. April 27, 2006 LIS580- Spring 2006 10
Change in “Calm Waters”
• Kurt Lewin’s Three-Step Process
–Unfreezing
• The driving forces, which direct behavior
away from the status quo, can be
increased
• The restraining forces, which hinder
movement from the existing equilibrium,
can be decreased
• The two approaches can be combined
–Implementation of change
–Refreezing
Prentice Hall, 2002

11. April 27, 2006 LIS580- Spring 2006 11
Change in “White-water
Rapids”
• Change is constant in a dynamic environment
• The only certainty is continuing uncertainty
• Competitive advantages do not last
• Managers must quickly and properly react to
unexpected events
– Be alert to problems and opportunities
– Become change agents in stimulating,
implementing and supporting change in the
organization
Prentice Hall, 2002

12. April 27, 2006 LIS580- Spring 2006 12
Is a New Structure Really Required?
FIGURE 8–2
Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a
Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes or
even reject the design. Here’s a
step-by-step process for
resolving problems.
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes or
even reject the design. Here’s a
step-by-step process for
resolving problems.
G.Dessler, 2003

13. April 27, 2006 LIS580- Spring 2006 13
Is a New Structure Really
Required? (cont’d)
FIGURE 8–2b
Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a
Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
G.Dessler, 2003

14. April 27, 2006 LIS580- Spring 2006 14
A Nine-step Process For Leading
Organizational Change
1. Create a Sense of
Urgency
2. Decide What to Change
3. Create a Guiding
Coalition and Mobilize
Commitment
4. Develop and
Communicate a Shared
Vision
5. Empower Employees to
Make the Change
6. Generate Short-Term
Wins
7. Consolidate Gains and
Produce More Change
8. Anchor the New Ways
of Doing Things in the
Company Culture
9. Monitor Progress and
Adjust the Vision as
Required
G.Dessler, 2003

15. April 27, 2006 LIS580- Spring 2006 15
Why People Resist Change
Prentice Hall, 2002

16. April 27, 2006 LIS580- Spring 2006 16
FIGURE 8–3
How Immune Is the Person to
Change?
Source: Robert Kegan and Lisa Lahey, “The Real Reason People
Won’t Change,” Harvard Business Review, November 2001, p. 89. G.Dessler, 2003

17. April 27, 2006 LIS580- Spring 2006 17G.Dessler, 2003
Dealing with Change

18. April 27, 2006 LIS580- Spring 2006 18
FIGURE 8–5
Barriers to Empowerment
Source: Reprinted by permission of Harvard Business School Press. From
Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright ©
1996 by the President and Fellows of Harvard College, all rights reserved. G.Dessler, 2003

19. April 27, 2006 LIS580- Spring 2006 19
Organizational Development
• Organizational Development (OD)
– An approach to organizational change in
which the employees themselves
formulate the change that’s required and
implement it,
usually with the
aid of a trained
consultant.
G.Dessler, 2003

20. April 27, 2006 LIS580- Spring 2006 20
OD Interventions
• Human Process Interventions
– Aimed at enabling employees to develop a better
understanding of their own and others’ behaviors
for the purpose of improving that behavior such
that the organization benefits.
• Sensitivity Training (Laboratory or T-groups)
– Purpose is to increase participants’ insight into
their own behavior and that of others by
encouraging an open expression of feelings in a
trainer-guided group.
G.Dessler, 2003

21. April 27, 2006 LIS580- Spring 2006 21
OD Interventions (cont’d)
• Team Building
– The process of improving the effectiveness
of a team through action research or other
techniques.
• Survey Research
– The process of collecting data from attitude
surveys filled out by employees of an
organization, then feeding the data back to
workgroups to provide a basis for problem
analysis and action planning.
G.Dessler, 2003

22. April 27, 2006 LIS580- Spring 2006 22
G.Dessler, 2003

23. April 27, 2006 LIS580- Spring 2006 23
Technostructural Applications of
OD
• Formal Structure Change Program
– An intervention technique in which
employees collect information on existing
formal organizational structures and
analyze it for the purpose of redesigning
and implementing
new organizational
structures.
G.Dessler, 2003

24. April 27, 2006 LIS580- Spring 2006 24
Strategic Applications of OD
• Strategic Intervention
– An OD application aimed at effecting a suitable fit
among a firm’s strategy, structure, culture, and
external environments.
• Integrated Strategic Management
– An OD program to create or change a company’s
strategy by:
• Analyzing the current strategy
• Choosing a desired strategy
• Designing a strategic change plan
• Implementing the new plan.
G.Dessler, 2003

25. April 27, 2006 LIS580- Spring 2006 25
Organizational Stressors:
Role Demands
• Role conflicts
– Work expectations that are hard to satisfy
• Role overload
– Having more work to accomplish than time
permits
• Role ambiguity
– When role expectations are not clearly
understood
Prentice Hall, 2002

26. April 27, 2006 LIS580- Spring 2006 26
FIGURE 8–7
Conflict Handling Styles
Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus, OH:
Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p. 223. G.Dessler, 2003

27. April 27, 2006 LIS580- Spring 2006 27
G.Dessler, 2003
Conflict Resolution Modes

28. April 27, 2006 LIS580- Spring 2006 28
Stimulating Innovation
• Creativity
– The ability to combine ideas in a unique way or to
make unusual connections
• Innovation
– The process of taking a creative idea and turning it
into a useful product, service, or method of
operation
• Perception
• Incubation
• Inspiration
• Innovation
Prentice Hall, 2002

29. April 27, 2006 LIS580- Spring 2006 29
Structural Variables Affecting
Innovation
• Organic structures
– Positively influence innovation through less work
specialization, fewer rules and decentralization
• Easy availability of plentiful resources
– Allow management to purchase innovations, bear
the cost of instituting innovations, and absorb
failures
• Frequent inter-unit communication
– Helps to break down barriers to innovation by
facilitating interaction across departmental lines
Prentice Hall, 2002

30. April 27, 2006 LIS580- Spring 2006 30
Next Week
• Leading– Monday’s topic is “motivation”
– Read Chapters 10 and 11 and the assigned
articles
• Discussion group-- think about the following
questions:
– Does NASA have clear and consistent
leadership?
– What are some of the problems with the
leadership structure?
– How do you think this affects the motivation of the
engineers and managers?
– Does this have impact on safety & performance?
– What could be done to improve the situation?