org change and development .ppt

ob

1. Chapter 18
Organizational Change
and Development

2. Learning Goals
•Discuss the pressures on managers to
change their organizations
•Describe different types of organizational
change
•Explain the phases and targets of planned
organizational change

3. Learning Goals (Cont.)
•List some reasons for resistance to change
in organizations
•Describe the organizational development
techniques managers can use to change their
organizations
•Understand some international aspects of
organizational change and development

4. Chapter Overview
•Introduction
•Forces For and Against Change
•Unplanned and Planned Organizational
Change
•Targets of Organizational Change
•Planned Organizational Change
•Resistance to Change

5. Chapter Overview (Cont.)
•Organizational Development
•International Aspects of Organizational
Change and Development
•Ethical Issues About Organizational Change
and Development

6. Introduction
•Organizational changeinvolves movement
from the present state of the organization to
some future or target state
•Future state can include a new strategy, new
technology, or changes in the organization’s
culture

7. Introduction (Cont.)
Time
A A’
Organizational change: moving from the
present state of the organization to some
future or target state.

8. Introduction (Cont.)
•Many sources of pressure on managers to
change their organizations exist and will
continue in the future
•Identify the pressures on organizations and
their managers to change
•Want to know the probable effects on you as
a member of a changing system

9. Introduction (Cont.)
•Know how to deliberately change an
organization
•Understand the sources of resistance to
change
•Learn how to manage the change process to
reduce resistance

10. Forces For and Against Change
•External forces for change
–Competitors and markets
–Acquisition threats
–International: global markets
–Workforce diversity
–Quality management

11. Forces For and Against Change
(Cont.)
•Internal forces for change
–High dissatisfaction
–Felt stress
–Loss of control of processes
–Dysfunctionally high conflict
–Slow decision making
–High turnover and absenteeism
–Communication dysfunctions

12. Forces For and Against Change
(Cont.)
•Forces against change
–Internal: resistance to change from individuals
and groups
–External: special interest groups such as
consumer groups and unions
View the forces for and against change as
a force field working on the organization

13. Forces For and Against Change
(Cont.)
Present state of
the organization
Desired state of
the organization
A A’Time
Forces for
change
Forces against
change
A Force Field
Text book Figure 18.1

14. Unplanned and Planned
Organizational Change
•Unplanned organizational change:forces
for change overwhelm resistance to change
•Planned organizational change:A
deliberate, systematic change effort

15. Unplanned and Planned
Organizational Change (Cont.)
•Unplanned organizational change
–Forces for change overwhelm resistance to
change
–Usually unexpected
–Chaotic, uncontrolled change effects
–Example: economic changes leading to
reductions in workforce

16. Unplanned and Planned
Organizational Change (Cont.)
•Planned organizational change
–A deliberate, systematic change effort
–Change organizational design, information
systems, job design, and people’s behavior
–Although managers try to follow a plan, the
change does not always move smoothly
–The change effort often hits blockages, causing
managers to rethink their goals and plan

17. Unplanned and Planned
Organizational Change (Cont.)
•Planned organizational change (cont.)
–Phases
•Define the desired future state of the organization
•Diagnose the present state of the organization
•Move the organization to the desired future state
–A change agenthelps managers to bring about
planned change. An external or internal
consultant

18. Targets of Planned
Organizational Change
•Organizational culture
•Decision processes
•Communication processes
•Job design
•Organizational design

19. Targets of Planned
Organizational Change (Cont.)
•Technology
•Strategy
Managers should choose the target only after careful
assessment of the current state of the organization
and the need for change.

20. Targets of Planned
Organizational Change (Cont.)
External
environment
Strategy
Targets
Culture
Technology
Organizational design
Job design
Mission
A model for thinking about planned organizational change

21. Planned Organizational Change
•Reasons for planned organizational change
–Managers react to environmental shifts
–They anticipate the future state of the external
environment
–Often a difficult task. As noted by an
organizational change scholar, “planned
organization change is messy and never as clear
as we have written in our books and articles”

22. Planned Organizational Change
(Cont.)
•Models of planned organizational change
–Evolutionary model
•Incremental change
•Example: changing the organization’s pay scale to
stay market competitive
–Revolutionary model
•Change many parts of an organization
•Example: strategic shift

23. Planned Organizational Change
(Cont.)
•Evolutionary model of organizational
change
–Three phases with no distinct boundaries. Each
phase blends into the next phase
•A manager or other change agent develops a need
for change among those affected
•The change agent then tries tomovethe
organization or part of it toward the changed state
•The change agent tries tostabilize the change and
make it a part of the organization

24. Planned Organizational Change
(Cont.)
•Evolutionary model of organizational
change
–Sees change happening in small bits that add to
a total amount of change
–Unexpected events can occur along the way,
forcing a return to an earlier phase

25. Planned Organizational Change
(Cont.)
•Revolutionary model of organizational
change
–Organizational change unfolds over long
periods of stability followed by bursts of major
change activities
–Uses three concepts
•Equilibrium period:organization moves steadily
toward its mission and goals
•Revolutionary period:a major change in the
strategic direction of the organization
•Deep structures:enduring features of the
organization that let it succeed

26. Planned Organizational Change
(Cont.)
•Revolutionary model of organizational
change (cont.)
–Two events trigger a revolutionary period
•Dissatisfaction with the organization's performance
•Strong feelings among organization members that it
is time for change

27. Planned Organizational Change
(Cont.)
•Revolutionary model of organizational
change (cont.)
–Dissatisfaction with the organization's
performance
•Misfit between the organization’s deep structure and
its current environment
•Follows a clear organizational failure or when many
believe failure is imminent

28. Planned Organizational Change
(Cont.)
•Revolutionary model of organizational
change (cont.)
–Strong feelings among organization members
that it is time for change
•Organization members feel uneasy with the current
equilibrium period
•Develop feelings of little forward movement
•Characterizes organizations that must shift direction

29. Resistance to Change
•No matter what the target, changes affect
the social system of an organization
•People develop long-standing, familiar
patterns of social interaction
•Strong resistance develops when
organizational change affects these social
networks

30. Resistance to Change (Cont.)
•Resistance can take many forms
–Lack of cooperation with the change effort
–Sabotage of the change effort
–Dysfunctionally high conflict levels

31. Resistance to Change (Cont.)
•Reasons for resistance to change
–Perceive the loss of something valued such as
social status
–Misunderstand the goal of the change
–Distrust the change agent
–No common perception of the value of the
change
–Low tolerance for change

32. Resistance to Change (Cont.)
•Manager’s orientation to resistance to
change
–Problem to overcome
•Forcefully reduce resistance
•Can increase resistance
–Signal to get more information
•Affected targets may have valuable insights about
the change’s effects
•Change agent can involve the targets in diagnosing
the reasons for the resistance

33. Resistance to Change (Cont.)
•Manager’s orientation to resistance to
change (cont.)
–Absence of resistance
•Also a signal to get more information
•Low commitment to the change can make the
change less effective
•Resisters can focus the change agents on potentially
dysfunctional aspects of a proposed change

34. Resistance to Change (Cont.)
•Managing the change process to reduce
resistance
–Use change agents with characteristics similar
to the change target
–Use dramatic ceremonies and symbols to signal
disengagement from the past
–Widely communicate information about the
change

35. Resistance to Change (Cont.)
•Managing the change process to reduce
resistance (cont.)
–Involve those affected by the change
–Commit enough resources
–Negotiation may be necessary, when a powerful
person or group is a potential source of
resistance

36. Resistance to Change (Cont.)
•Managing the change process to reduce
resistance (cont.)
–Cooptation: a political tactic that aims to gain
endorsement of the change from important
individuals or groups
–Sometimes no choice other than to force change
onto the target system

37. Organizational Development
•Organizational developmentis a long-
term, systematic, and prescriptive approach
to planned organizational change
•Although it uses a system-wide view, it can
focus on single subsystems of an
organization
•Applies the theories and concepts of the
social and behavioral sciences to
organizational change

38. Organizational Development
(Cont.)
•Tries to develop an organization’s self-
renewing capacity
•Tries to create an organization that can
continuously improve
•Views conflict as an inevitable part of
organizational life

39. Phases of Organizational
Development (Cont.)
•Organizational development unfolds in a
series of phases
•These are phases, not steps, because no
clear boundaries exist between them
•Phases can repeat. For example, during the
evaluation phase, managers may discover a
need for more data from the diagnosis stage
See text book Figure 18.2

40. Phases of Organizational
Development (Cont.)
•Entry
–First contact of the consultant with the client
–Usually client initiates contact
–Building a client-consultant relationship
–Mutual evaluation of each other
–Decide they can develop a compatible working
relationship

41. Phases of Organizational
Development (Cont.)
•Contracting
–Develop an agreement between the consultant
and client
–Can range from an oral agreement to a legally
binding agreement
–Describes mutual expectations and each party’s
duties
–Not static. Subject to renegotiation as the
organizational development program unfolds

42. Phases of Organizational
Development (Cont.)
•Diagnosis
–Consultant gets information about the client
system and diagnoses its current state
•Observe the client’s behavior and reactions
•Observe physical characteristics of system
•Systematic data collection using surveys, interviews,
and company records
–Consultant summarizes this phase’s results for
feedback to the client system

43. Phases of Organizational
Development (Cont.)
•Feedback
–Consultant has a series of feedback meetings
with client system members
–The number of meetings varies according to the
scope of the organizational development
program
–Several steps: (1) consultant’s analysis; (2)
discussion; (3) consultant’s preliminary
diagnosis; and (4) actively work with members
of client system to arrive at collaborative
diagnosis

44. Phases of Organizational
Development (Cont.)
•Planning the change
–A collaborative activity between the consultant
and client system
–Identify alternative courses of action and the
effects of each
–Lay out the steps in the change program
–Client decides the nature of the change
program--not the consultant

45. Phases of Organizational
Development (Cont.)
•Intervention
–Collaborative intervention to move the client
system to the desired future state
–Includes job and organizational design changes,
conflict reduction program, and the like. See
the “Organizational Development
Interventions” section of the chapter
–Consultant’s role: help the intervention and
forecast dysfunctional results
–Earlier client involvement helps reduce
resistance to change in the intervention phase

46. Phases of Organizational
Development (Cont.)
•Evaluation
–Focuses on whether the organizational
development effort had the desired effect
–Ranges from simply asking how the client feels
to a well-designed research effort
–Done independently of the consultant
–Should also give the client system information
about the next steps to take

47. Phases of Organizational
Development (Cont.)
•Termination
–Ends at some point
•Client terminates consultant
•As the client system changes and develops, the
external consultant reduces involvement
–Internal consultants are part of the organization
and can continue contact
–The goal is independence of the client system
from the consultant. Build client system self-
reliance

48. Organizational Development
Interventions
•Many interventions exist for organizational
development programs
•Systematic techniques drawn from the
behavioral sciences
•Earlier chapters have detailed descriptions
of the interventions summarized here

49. Organizational Development
Interventions (Cont.)
•Human processinterventions
–Focus on interpersonal, intra-group, and
intergroup processes
–Includes conflict, communication and decision
making
–Goal: improve human processes to get more
effective organizational functioning

50. Organizational Development
Interventions (Cont.)
•Structural and technological interventions
–Focus on organizational design, job design, and
the addition of new technology
–New technology focuses on improving
organizational processes
–Goal: improve human productivity and
organizational effectiveness

51. Organizational Development
Interventions (Cont.)
•Human resource management
interventions
–Draws on the human resource management or
personnel practices of an organization
–Includes motivation and rewards, career
planning and development, and stress
management
–Goal: change individual behavior and
performance to get improved organizational
effectiveness

52. Organizational Development
Interventions (Cont.)
•Strategyinterventions
–Changes in an organization’s strategic position
to better align it with the external environment
–Includes changes in the organization’s culture
to create values and beliefs more congruent
with the new environment
–Goal: strategic shifts to gain competitive
advantage

53. Organizational Development
Interventions (Cont.)
•Multiple interventions have the strongest
effects
•Structural/technological interventions and
human resource management interventions
had the strongest effects
•Effects stronger in small organizations than
in large organizations
•Survey feedback has weaker effects than
other interventions

54. International Aspects of
Organizational Development
•Intellectual roots of organizational
development are mainly in the United
States, England, northern Europe, and
Scandinavia
•Values and assumptions of organizational
development consultants likely reflect these
cultural values
•Nature of interventions also reflect these
cultural values

55. International Aspects of
Organizational Development
(Cont.)
•Cultural differences and effect of
organizational development approaches
–Latin American workers often accept a directive
management style
–France and Italy: view organizations as
hierarchical systems that use power and
political behavior
–Sweden and the United States: view
organizations as less hierarchical

56. International Aspects of
Organizational Development
(Cont.)
•Cultural differences and effect of
organizational development approaches
(cont.)
–Conflict management approaches vary
depending on tolerance of uncertainty
–Tend to use nonconfrontational approaches to
conflict reduction

57. Ethical Issues About
Organizational Development
•Ethical dilemmas that can undermine an
organizational development effort
–Misrepresentation of consultant’s capabilities,
skills, or experience
–Misrepresentation of client’s problems
–Data confidentiality and voluntarism in
providing data
–Full awareness of and consent to the behavioral
changes asked of participants