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Organizational Organizational Change and Change and Organizational Organizational Change and Change and
C H A P T E RC H A P T E R 1616
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Change and Change and DevelopmentDevelopmentChange and Change and DevelopmentDevelopment
Driving Change at EDSDriving Change at EDS
� listening to customer complaints
�
Richard H. “Dick” Brown
drove the change effort at
EDS by:
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
AP/ Wide World
�changing the firm’s structure
�monitoring the change process
�communicating the change directly with employees
�replacing several executives
Some External Forces for ChangeSome External Forces for Change
InformationInformationTechnologyTechnology
GlobalizationGlobalization& Competition& Competition
Easier information transfer
Facilitates global structures
Requires new competencies and expectations
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& Competition& Competition
DemographyDemography
Facilitates telecommuting; new employment relationships
More emphasis on knowledge management
Some External Forces for ChangeSome External Forces for Change
InformationInformationTechnologyTechnology
GlobalizationGlobalization& Competition& Competition
Global competition
Technology makes it easier to compete quickly
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& Competition& Competition
DemographyDemography
Results in restructuring, outsourcing, mergers � produces many employment
changes
Some External Forces for ChangeSome External Forces for Change
InformationInformationTechnologyTechnology
GlobalizationGlobalization& Competition& Competition
More educated workforce
� want involvement; interesting work
Younger generation
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& Competition& Competition
DemographyDemography
Younger generation
� less intimidated by status
� want a more balanced work life
Cultural changes
� more individualism in traditionally collectivist countries
DesiredConditions
Force Field AnalysisForce Field Analysis
RestrainingForces Driving
Forces
RestrainingForces
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CurrentConditions
BeforeChange
AfterChange
DrivingForces
RestrainingForces
DuringChange
DrivingForces
Forces
Resistance to Change at BP NorgeResistance to Change at BP Norge
“We already have teams!”
“SDWTs don’t work on rigs!”
Employees initially resisted self-
directed work teams (SDWTs) at BP
Norge’s North Sea drilling rigs.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
“This creates more work -- we want higher pay!”
“I don’t know how to work in teams.”
“SDWTs will threaten my job as a supervisor!”
AP/ Wide World
Resistance to ChangeResistance to Change
Direct Costs
Saving Face
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Forces forForces for
ChangeChange
Fear of the Unknown
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
Creating an Urgency for ChangeCreating an Urgency for Change
Need to motivate employees to change
Most difficult when organization is doing well
Must be real, not contrived
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Must be real, not contrived
Customer-driven change
�Adverse consequences for firm
�Human element energizes employees
Reducing Restraining Forces at UnileverReducing Restraining Forces at Unilever
Gary Calveley (right) brought in
team coaches to train
employees throughout the
process of changing Unilever’s
Elida Faberge factory into
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Elida Faberge factory into
Europe’s best factory. A
theatrical production helped to
communicate the changes that
Calveley was trying to achieve
through coaching.
Dean Smith/The Camera Crew
MinimizingMinimizing
CommunicationCommunication
TrainingTrainingCoercionCoercion
Minimizing Resistance to ChangeMinimizing Resistance to Change
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MinimizingMinimizingResistanceResistanceto Changeto Change EmployeeEmployee
InvolvementInvolvement
StressStressManagementManagement
NegotiationNegotiation
Refreezing the Desired ConditionsRefreezing the Desired Conditions
Creating organizational systems and team
dynamics to reinforce desired changes
� alter rewards to reinforce new behaviors
� new information systems guide new behaviors
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� new information systems guide new behaviors
� recalibrate and introduce feedback systems to
focus on new priorities
Strategic Vision & Change AgentsStrategic Vision & Change Agents
Strategic Vision and Change
�Need vision of desired future state
�Minimizes employee fear of the unknown
�Clarifies role perceptions
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Change Agents
�Possess knowledge and power to facilitate the
change effort
�Usually internal change champion
�Need to be transformational leaders
Conditions for Diffusing ChangeConditions for Diffusing Change
Successful pilot study
Favorable publicity
Top management support
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Top management support
Labor union involvement
Diffusion strategy described well
Pilot program people moved around
Organization Development DefinedOrganization Development Defined
A planned system wide effort, managed from
the top with the assistance of a change
agent, that uses behavioral science
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agent, that uses behavioral science
knowledge to improve organizational
effectiveness.
EstablishEstablishClientClient--
ConsultantConsultantRelationsRelations
Action Research ProcessAction Research Process
DiagnoseDiagnoseIntroduceIntroduce
Evaluate/Evaluate/
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DisengageDisengageConsultant’sConsultant’s
ServicesServices
DiagnoseDiagnose
Need forNeed for
ChangeChange
IntroduceIntroduce
ChangeChange
Evaluate/Evaluate/
StabilizeStabilize
ChangeChange
OrganizationParallel Learning Structure
Parallel Learning StructuresParallel Learning Structures
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Appreciative Inquiry at Hunter DouglasAppreciative Inquiry at Hunter Douglas
The Hunter Douglas Window
Fashions Division in Colorado
relied on appreciative inquiry as
well as a search conference to
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create a collective vision, re-
instill a sense of community
among employees, and build
leadership within the company. Courtesy of Amanda Trotsen-Bloom
What is Appreciative Inquiry?What is Appreciative Inquiry?
Directs the group’s attention
away from its own problems
and focuses participants on
the group’s potential and
positive elements.
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positive elements.
Reframes relationships
around the positive rather
than being problem orientedCourtesy of Amanda Trotsen-Bloom
DiscoveryDiscovery DreamingDreaming
Forming Forming
DesigningDesigning
Engaging in Engaging in
DeliveringDelivering
Developing Developing
Appreciative Inquiry ProcessAppreciative Inquiry Process
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Discovering Discovering
the best of the best of
“what is”“what is”
Forming Forming
ideas about ideas about
“what might “what might
be”be”
Engaging in Engaging in
dialogue dialogue
about “what about “what
should be”should be”
Developing Developing
objectives objectives
about “what about “what
will be”will be”
Organization Development Concerns Organization Development Concerns
Cross-Cultural Concerns
�Linear and open conflict assumptions
different from values in some cultures
Ethical Concerns
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Ethical Concerns
�Management power
�Employee privacy rights
�Employee self-esteem
�Consultant’s role
Organizational Organizational Change and Change and Organizational Organizational Change and Change and
C H A P T E RC H A P T E R 1616
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Change and Change and DevelopmentDevelopmentChange and Change and DevelopmentDevelopment