The document discusses managing organizational change. It covers topics such as the reasons why organizations change both externally from factors like globalization and workforce diversity, and internally from issues like declining effectiveness. It also discusses the different types and scopes of change, managing resistance to change, and models for guiding the change process, such as Lewin's three-stage model of change. Finally, it outlines various organization development interventions that can be used to facilitate planned change within an organization.

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May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in
part.
Managing Change

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Learning Objectives
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1 Examine the major external and internal
forces for change in organizations.
2 Understand incremental change, strategic
change, transformational change, and
change agent.
3 Evaluate the reasons for resistance to
change, and discuss methods organizations
can use to manage resistance.
4 Explain Lewin’s organizational change
model.
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Learning Objectives continued
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5 Apply force field analysis to a problem.
6 Discuss the major organization
development interventions.
7 Describe the use of organizational diagnosis
and needs analysis as a first step in
organizational development.
8 Identify the ethical issues that must be
considered in organization development
efforts.
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Change in Organizations
• Change resulting from
a deliberate decision
to alter the
organization
Planned
change
• Change imposed on
the organization and
often unforeseen
Unplanned
change
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External Forces
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Why
change?
Globalization
Workforce
diversity
Technological
change
Ethical
behavior

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Globalization and Change
• Globalizing an organization means rethinking
the most efficient ways to
• Use resources
• Disseminate and gather information
• Develop people
• It requires structural changes and changes in
the minds of employees
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Workforce Diversity and Change
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Majority of
new workers
will be
female
Workforce
will grow in
cultural
diversity
Workforce is
aging – more
middle-aged

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Ethical Behavior and Change
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Other organizations Customers
Society Environment
Ethical
Treatment

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Internal Forces
Declining
effectiveness
Crisis
Changing
employee
expectations
Changing
work climate
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Scope of Change
• Incremental change: change of a relatively
small scope
• Strategic change: change from an old state
to a known new state during a controlled
period of time
• Transformational change: radical change to a
sometimes unknown future state
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The Change Agent
Change agent: the individual or group who
undertakes the task of introducing and
managing a change in an organization
Effective change leaders build relationships
• Within the leadership team
• Between the team and organizational
members
• Between the team and key environmental
players
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A Typical Change Agent
• Young (25-40)
• Female
• Flexible
• People-oriented
• Tough decision maker
• Focuses on performance results
• Energizes people
• Operates in multiple leadership styles
• Comfortable with uncertainty
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Internal Change Agents
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Advantages
Know past history, political system,
and culture
Must live with results of change so
will move carefully
Disadvantages
May be associated with
factions, accused of
favoritism
May be too close to the
situation to be objective

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External Change Agents
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Advantages
Outsider’s objective view
Impartiality
Disadvantages
Limited knowledge of
organization’s history
May be viewed with
suspicion

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External Change Agents
Power
Perceived
as
trustworthy
Expertise
Track record
and
credibility
Similar to
employees
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Resistance to Change
• Fear of the unknown
• Fear of loss
• Fear of failure
• Disruption of interpersonal relationships
• Personality conflicts
• Politics
• Cultural assumptions and values
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Managing Resistance to Change
• Communication
• Details
• Rationale
• Participation in the process
• Empathy and support
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Behavioral Reactions to Change
• Psychological withdrawal from change
Disengagement
• Feeling that one’s identity has been threatened by change
Disidentification
• Feeling negativity or anger toward a change
Disenchantment
• Feelings of loss and confusion due to a change
Disorientation
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Managerial Interventions
• Confront them with their reaction
and draw them outDisengagement
• Encourage them to explore their
feelings and transfer positive feelingsDisidentification
• Allow them to let off steam so they
can come to terms with angerDisenchantment
• Explain that the change minimizes
ambiguity and fits into the visionDisorientation
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Lewin’s Change Model
• Unfreezing: the organization eliminates
rewards for current behavior
• Moving: the organization initiates new
options and explains their rationale
• Refreezing: organizational culture and formal
reward systems encourage the new
behaviors
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Unfreezing Moving Refreezing

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Organization Development
• Organization development (OD) is a
systematic approach to organizational
improvement
• That applies behavioral science theory and
research
• In order to increase individual and
organizational well-being and effectiveness
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Levinson’s Diagnostic Approach
• Where is the pain in the organization?
• What is it like?
• How long has it been happening?
• What has already been done about it?
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Levinson’s Diagnostic Approach
Four-part, comprehensive diagnosis:
1. Achieve an understanding of the
organization’s history
2. Obtain data about its structure and
processes
3. Gather interpretive data about attitudes,
relationships, and organizational
functioning
4. Analyze data and draw conclusions
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Intervention Methods: Organization and Group
Survey
feedback
Management
by objectives
Quality
programs
Team
building
Process
consultation
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Intervention Methods: Organization and Group
• Survey feedback: employee attitudes are
solicited via a questionnaire
• Data are fed back to employees to diagnose
problems and plan other interventions
• For effective survey feedback
• Assure confidentiality and anonymity
• Report in a group format
• Assure there will be no negative repercussions
• Inform employees of the purpose
• Follow through on survey results
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Intervention Methods: Organization and Group
Management by
objectives : involves
joint goal setting
between employees
and managers
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Set initial
objectives
Periodic
progress
reviews
Problem solving

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Intervention Methods: Organization and Group
• Quality programs: programs that embed
product and service quality excellence in the
organizational culture
• Team building: an intervention designed to
improve the effectiveness of a work group
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Intervention Methods: Organization and Group
• Process consultation: helps managers and
employees improve processes
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Enters
organization
Defines the
relationship
Chooses an
approach
Gathers data
Diagnoses
problem
Intervenes
Leaves
organization
Outside
Consultant

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Intervention Methods: Individual
Skills training
Leadership
development
Executive
coaching
Role
negotiation
Job redesign
Health
promotion
Career
planning
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Intervention Methods: Individual
• Skills training: “What knowledge, skills, and
abilities are necessary to do this job
effectively?”
• Leadership training and development:
techniques designed to enhance individuals’
leadership skills
• Executive coaching: managers or executives
are paired with a coach in a partnership
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Intervention Methods: Individual
• Role negotiation: individuals meet and clarify
their psychological contract
• Job redesign: emphasizes the fit between
individual skills and the demands of the job
• Health promotion programs: programs that
support employee wellness and psychologically
healthy work environments
• Career planning: matching an individual’s career
aspirations with the opportunities in the
organization
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Ethical Issues in OD
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Ethics
Selection of
method
Voluntary
participation
Confidentiality
Manipulation
by change
agent

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Managing Change
• Recognize the forces for change
• Develop shared vision
• Visibly demonstrate support for change
• Conduct comprehensive diagnosis and needs analysis
• Ensure adequate resources to implement change
• Plan for and manage resistance to change
• Select OD technique to meet goals of change
• Manage OD efforts ethically
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Chapter 18: Reflect & Discuss
Field of Dreams Video Clip
• Who is the target of change in this scene?
• Apply a force field analysis to this scene.
What are the forces for change? What are
the forces for status quo?
• Is their any evidence of resistance to change
in this scene? Give specific examples of
resistance behavior from the scene.
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