This document discusses organizational change and managing resistance to change. It provides an overview of different types of organizational changes, models of change management, sources of resistance to change, and approaches for addressing resistance. Specifically, it distinguishes between first and second order changes, describes Lewin's three-step change model and Kotter's eight steps for leading change. It also outlines forces for and responses to change, and interventions for bringing about change like structural, task-technology and people-focused approaches.

1. MM202 Organizational Behavior
March 15, 2014

2. The difference between
sink or swim
A walk in the park
Happening!
The key to success
The unknown
A reflection of the past
Hard work

4. First Order, Incremental Change
• “May involve adjustments in systems, processes, or
structures, but it does not involve fundamental change
in strategy, core values, or corporate identity.”
• Small-scale, Local changes
• May be personal initiatives or development of local
routines
Second-order, Discontinuous Change
• “is transformational, radical, and fundamentally alters
the organization at its core.”

5. Table 4.2 Rationale for New Organizational Changes
Adapted from Whittington et al., 1999:589.

6. Table 4.2 Rationale for New Organizational Changes
Adapted from Whittington et al., 1999:589.

7. Table 4.2 Rationale for New Organizational Changes
Adapted from Whittington et al., 1999:589.

9. INTERNAL
Structure
Organizational Culture
Quality programs
New business processes
Pressures most likely to have
major effects on organizations
EXTERNAL
Technology
Economic Shocks
Competition
World politics
Nature of the workforce
Social trends

10. Nature of workforce
Technology
Economic Shocks
Competition
Social Trends
World Politics

11. Nature of the Workforce

12.  Rise and fall of global housing
market
 Financial sector collapse
 Global recession
Technology
 Faster, cheaper, and more
mobile computers and
handheld devices
 Emergence and growth of social
networking sites
 Deciphering of the human
genetic code
Economic Shocks

13.  Increased environmental
awareness
 Liberalization of attitudes toward
gay, lesbian, and transgender
employees
 More multitasking and
connectivity
Competition
 Global competitors
 Mergers and consolidations
 Increased government
regulation of commerce
Social Trends
 Raising health care costs
 Negative social attitudes
toward business and executives
 Opening of markets in China
World Politics

15.  Seeks to improve the ability of organization to adapt
to changes in the environment
 Seeks to change employee behavior
Proactive and purposeful

16. TwoViews
“Calm Waters” “White Water Rapids”
Proactive and purposeful
Unfreezing
Changing
Refreezing
Force
Problem
Implement
Process
Evaluate
Transition
agent
 Lewin’s Three-Step Change Process
 Continuous Change Process

17. Kurt Lewin’s Change Process
OLD STATE
UNFREEZE CHANGE REFREEZE
NEW STATE
Awareness of
need for change
Movement from
old state to new
state
Assurance of
permanent
change

18. John Kotter’s Steps for Leading Organizational Change
Phase 1
Unfreezing
Change Leader’s task:
Create a need for change
This is done by:
• Establishing a good relationship with those involved
• Helping others to realize the need to change existing behavior as
they are not effective
• Minimizing resistance to change
Phase 2
Changing
Change leader’s task:
Implement change
This is done by:
• Identifying new and more effective behaviors
• Choosing appropriate changes in tasks, people and other factors
significant to the changes we are proposing
• Taking appropriate action to implement changes
Phase 3
Refreezing
Change leader’s task:
Stabilizing change
This is done by:
• Creating acceptance and continuity for the new behaviors
• Providing necessary resource support
• Using positive reinforcement to encourage positive outcome

19. Continuous Change Process Model
Adapted from Griffin and Moorhead, 2006:398
1. Forces for
Change
2.Recognize
and Define
Problem
4. Implement
the Change
3. Problem-
solving
Process
5. Measure,
Evaluate,
Control
Transition
Management
Change
Agent
Organizations respond
• Anticipate
• Prepare
• Incorporate

20. Understanding and Managing Resistance to Change

21.  Provides a degree of stability and
predictability to behavior
 A source of functional conflict
 Hinders adaptation and progress

22.  Habit
 Security
 Economic Factors
 Fear of the Unknown
 Lack of Awareness
 Social Factors
 Structural Inertia
 Limited Focus of Change
 Group Inertia
 Threat to Expertise
 Threat to Established Power
Relationships
 Threat to Established
Resource Allocations
Individual Resistance Organizational Resistance

23.  A predisposition
 Programmed
response
Individual Resistance
 Selectively
processing
information
 A perceptual
limitation
Habit Security
Economic
Factors
Fear of the
Unknown
Lack of
Awareness
Social Factors
 The comfort of
doing things the
same way
 Possibly reduce
opportunity for
income increase
 Dislike for
uncertainty
 Not knowing what
is expected of
them
 Fear of what
others will think
 Peer pressure

24. Organizational Resistance
Structural inertia – designed to maintain stability
Limited focus of change
– Adopts too narrow a focus
– Interdependencies not taken to account
Group inertia
– Group norms act as constraint to individual
change
Threatened expertise
– Possible transfer or elimination of
specialized task
Threatened power
– Redistribution of decision-making
authority
Resource allocations – Threat to future allocations

25. Approach
Commonly Used
in Situations
Advantages Drawbacks
Education and
Communication
- Where there is
lack of
information
- inaccurate
information
and analysis
Once persuaded,
people will often
help with the
implementation of
the change
Can be very time
consuming if lots
of people are
involved
Participation
and involvement
- Where
initiators do not
have all
information to
design the
change
- Others have
considerable
power to resist
People who
participate will be
committed to
implementing
change; relevant
information they
have will be
integrated into the
change plan
Can be very time
consuming if
change design is
inappropriate
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. NewYork. p. 241.

26. Approach
Commonly Used
in Situations
Advantages Drawbacks
Facilitation and
Support
- Where people
are resisting
because of
adjustment
problems
No approach
works as well with
adjustment
problems
Can be time
consuming,
expensive, and
still fail
Negotiation and
agreement
- Where
someone or
some group
will clearly lose
out in a change
- Group has
considerable
power to resist
Sometimes it is a
relatively easy
way to avoid
major resistance
Can be too
expensive in
many cases if it
alerts others to
negotiate for
compliance
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. NewYork. p. 241.

27. Approach
Commonly Used
in Situations
Advantages Drawbacks
Manipulation
and co-optation
- Where other
tactics will not
work or are too
expensive
It can be a
relatively quick
and inexpensive
solution to
resistance
problems
Can lead to future
problems if
people feel
manipulated
Explicit and
implicit coercion
- Where speed is
essential
- Where
initiators
possess
considerable
power
It is speedy and
can overcome any
kind of resistance
Can be risky if it
leaves people
angry at the
initiators
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. NewYork. p. 241.

28. Symptoms:
 Increased heart rate, blood pressure…
(physiological)
 Job Dissatisfaction (psychological)
 Changes in productivity, absence, turnover…
(behavioral)
WORK STRESS
Reduce (dysfunctional) stress:
 Employee selection – job matching
 Job redesign – increase challenge or reduce workload
 Counseling
To be continued…

29. Managing change

30. The process of planned change and
improvement of the organization through
application of knowledge of the behavioral
sciences.
Griffin and Moorhead (2006)
 Attempts to plan organization changes
 Specific intention is to improve the organization
 Planned improvement is based on knowledge of
behavioral sciences rather than on financial or
technological considerations
 Is built on humanistic-democratic values

31. Interventions for bringing about change
.
. . .
.STRUCTURAL INTERVENTIONS
TASK-TECHNOLOGY
INTERVENTIONS
PEOPLE-
FOCUSED
INTERVENTIONS

32. Structural
Intervention
Structural
Reorganization
New Reward
System
Changing
Organizational
Culture
• Flatter
• Decentralized
• Organic
 Economic benefits
 Improved
communication
 Give greater
autonomy
• Move to “pay-for-
performance”
programs
• Group-based
bonus plans
• Introducing new
cultural values
 Support less
management control
 Increase tolerance
for risk and conflict
 Open communication
channels

33. Step 1: Recognition of a need for a
change
Step 2: Selection of task redesign as a
potential intervention
Step 3: Diagnosis of the work system
and context
a. Diagnosis of existing jobs
b. Diagnosis of existing workforce
c. Diagnosis of technology
d. Diagnosis of organization design
e. Diagnosis of leader behavior
f. Diagnosis of group and social
process
Step 4: Cost-benefit analysis of
proposed changes
Step 5: Go/ no-go decision
Step 6: Formulation of the strategy for
redesign
Step 7: Implementation of the task
changes
Step 8: Implementation of any
supplemental changes
Step 9: Evaluation of the task redesign
effort
Source: Adapted from Griffin & Moorhead. (2006). p.401

34. Sensitivity
Training
Process
Consultation
Survey
Feedback
Team Building
Intergroup
Development
People-Focused
Interventions
Unstructured
group interaction
Resolving differences
in perception
Consultant as
change agent
Clarify each member’s
role in the group
Directed toward
improving intergroup
relations

35. Consider introducing these variables to create an
innovative climate:
STIMULATING
INNOVATION
 Structural variables
 organic structures, managerial tenure, slack resources, inter-unit
communication
 Cultural variables
 Encourage experimentation – reward both success and failure
 Human Resource variables
 Active training and development to keep them current
 Encourage individuals to become champions of change
What can managers do to help
their organizations become
more innovative?

36. CREATING A
LEARNING
ORGANIZATION
 Establish a strategy
 Commitment to change, innovation, and continuous improvement
 Redesign the organization’s structure
 Reinforce interdependence, reduce boundaries
 Reshape the organization’s culture
“We think agreement is so important.Who cares? You have to bring paradoxes, conflicts,
and dilemmas out in the open, so collectively we can be more intelligent than we can be
individually.“
How can managers create a
continuously changing and
learning organization?

37.  Now in the 21st century, change and how to lead it successfully
has become a critical topic on the minds of organizational
leaders
 The future success of our organizations depends on how
successful leaders are at leading change
 Leaders themselves must transform to lead transformation
successfully in their organizations.
 Today’s marketplace demands conscious change leadership – a
shift in consciousness regarding how we view change,ourselves,
and our roles as change leaders.
FOOD FOR THOUGHT

39. Ahmad, Z. A., Surienty, L., Effendi, A. A., Jauhar,J., Rohaida, S., & Sharma,T. (2009).
Understanding Organizational Behaviour. NewYork: Oxford University Press.
Anderson,D., & Anderson, L. A. (2010). Beyond Change Management. San Francisco:Pfeiffer.
Griffin, R.W., & Moorhead, G. (2006). Fundamentals of Organizational Behavior. Boston:
Houghton Mifflin Company.
Robbins, S. P. (2000). Essentials of Organizational Behavior. New Jersey: Prentice Hall.
Web sources:
http://highered.mcgraw-hill.com/sites/dl/free/0073404993/579428/Sample_Chapter.pdf
http://en.wikipedia.org/wiki/Who_Moved_My_Cheese%3F

40. Sources of Pictures
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 http://ondemandweekly.com/blog/article/shock_doctrine_-
_on_demand_direct_from_the_sundance_film_festival/
 http://www.sundaytimes.lk/120129/Columns/eco.html
 http://cj222.wordpress.com/2013/03/16/convergence-is-changing-the-face-of-
journalism/comment-page-1/
 http://mishradivyam.blogspot.com/
 https://www.cipd.co.uk/cipd-hr-profession/about-us/our-purpose.aspx
 http://www.amazon.com/Who-Moved-My-Cheese-Amazing/dp/0399144463
 http://gailbottomleyonline.com/has-your-cheese-moved-lately
 http://thereisnomap.wordpress.com/2010/02/