Managing Change for Organizational Development

7/28/2019 Managing Change for Organizational Development

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Managing Change for

Organizational Development


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External and Internal Forces for Change

External Changing consumer

needs and wants

New governmental laws

Changing technology

Economic changes

InternalNew organizational

strategy

Change in composition

of workforce New equipment

Changing employee

attitudes


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What Is Change?

Characteristics of Change

Is constant yet varies in degree and direction

Produces uncertainty yet is not completely unpredictable

Creates both threats and opportunities Managing change is an integral part

of every managers job.


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The Change Process

The Calm Waters Metaphor Lewins description of the change process as a break in the

organizations equilibrium state

Unfreezing the status quo

Changingto a new state

Refreezingto make the change permanent

White-Water Rapids Metaphor

The lack of environmental stability and predictability requires

that managers and organizations continually adapt (manage

change actively) to survive.


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The Change Process


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Organizational Change and Change Agents

Organizational Change

Any alterations in the people, structure, or technology of an

organization

Change Agents

Persons who act as catalysts and assume the responsibility for

managing the change process.

Types of Change Agents

Managers: internal entrepreneurs

Nonmanagers: change specialists

Outside consultants: change implementation experts


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Types of Change

Structure Changing an organizations structural components or its structural

design

Technology

Adopting new equipment, tools, or operating methods that displaceold skills and require new ones

Automation: replacing certain tasks done by people with machines

Computerization

People

Changing attitudes, expectations, perceptions, and behaviors of theworkforce


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Organizational Development

Organizational Development (OD) A collection of planned interventions, built on humanistic-

democratic values, that seeks to improve organizational

effectiveness and employee well-being

OD Values

Respect for people

Trust and support

Power equalization

Confrontation

Participation


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Six OD Techniques

1. Sensitivity Training

Training groups (T-groups) that seek to change behavior through

unstructured group interaction

Provides increased awareness of others and self

Increases empathy with others, listening skills, openness, and

tolerance for others2. Survey Feedback Approach

The use of questionnaires to identify discrepancies among member

perceptions; discussion follows and remedies are suggested

3. Process Consultation (PC)

A consultant gives a client insights into what is going on around

the client, within the client, and between the client and other

people; identifies processes that need improvement.


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Six OD Techniques (Continued)

4. Team Building

High interaction among team members to increase trust andopenness

5. Intergroup Development

OD efforts to change the attitudes, stereotypes, and

perceptions that groups have of each other6. Appreciative Inquiry

Seeks to identify the unique qualities and special strengths ofan organization, which can then be built on to improve

performance

Discovery: Recalling the strengths of the organization

Dreaming: Speculation on the future of the organization

Design: Finding a common vision

Destiny: Deciding how to fulfill the dream


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Popular OD Techniques


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Managing Resistance to Change

Why People Resist Change The ambiguity and uncertainty that change introduces

The comfort of old habits

A concern over personal loss of status, money, authority,

friendships, and personal convenience

The perception that change is incompatible with the goals and

interest of the organization


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Resistance to Change

Resistance to change appears to be a natural and

positive state

Forms of Resistance to Change:

Overt and Immediate

Voicing complaints, engaging in job actions

Implicit and Deferred

Loss of employee loyalty and motivation, increased errors or

mistakes, increased absenteeism

Deferred resistance clouds the link between source and

reaction


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Sources of Resistance to Change


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Tactics for Overcoming Resistance to Change

Education and Communication

Show those effected the logic behind the change

Participation

Participation in the decision process lessens resistance

Building Support and Commitment

Counseling, therapy, or new-skills training Implementing Change Fairly

Be consistent and procedurally fair

Manipulation and Cooptation

Spinning the message to gain cooperation

Selecting people who accept change

Hire people who enjoy change in the first place

Coercion

Direct threats and force


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Reducing Resistance to Change


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Issues in Managing Change (contd)

Changing Organizational Cultures

Cultures are naturally resistant to change.

Conditions that facilitate cultural change:

The occurrence of a dramatic crisis

Leadership changing hands

A young, flexible, and small organization

A weak organizational culture


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Strategies for Managing Cultural Change

Set the tone through management behavior; top managers,

particularly, need to be positive role models.

Create new stories, symbols, and rituals to replace thosecurrently in use.

Select, promote, and support employees who adopt the newvalues.

Redesign socialization processes to align with the new values.

To encourage acceptance of the new values, change the rewardsystem.

Replace unwritten norms with clearly specified expectations.

Shake up current subcultures through job transfers, jobrotation, and/or terminations.

Work to get consensus through employee participation andcreating a climate with a high level of trust.


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Handling Employee Stress

Stress

The adverse reaction people have to excessive pressure placed on

them from extraordinary demands, constraints, or opportunities.

Functional Stress

Stress that has a positive effect on performance.

How Potential Stress Becomes Actual Stress

When there is uncertainty over the outcome.

When the outcome is important.


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Symptoms of Stress


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Reducing Stress

Engage in proper employee selection

Use realistic job interviews for reduce ambiguity

Improve organizational communications Develop a performance planning program

Use job redesign

Provide a counseling program

Offer time planning management assistance

Sponsor wellness programs


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Making Change Happen Successfully

Embrace changebecome a change-capable organization.

Create a simple, compelling message explaining why change is

necessary. Communicate constantly and honestly.

Foster as much employee participation as possibleget all

employees committed.

Encourage employees to be flexible. Remove those who resist and cannot be changed.


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Characteristics of Change-Capable Organizations

Link the present and

the future.

Make learning a way

of life.

Actively support and

encourage day-to-day

improvements and

changes.

Ensure diverse teams.

Encourage mavericks.

Shelter breakthroughs.

Integrate technology.

Build and deepen trust.


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Stimulating Innovation

Creativity

The ability to combine ideas in a unique way or to make an

unusual association.

Innovation

Turning the outcomes of the creative process into useful

products, services, or work methods.


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Worlds Most Innovative Companies

Source: The Worlds Most Innovative Companies by Region, BusinessWeek, BusinessWeekOnline, April 15, 2008, businessweek.com


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Systems View of Innovation

Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, Toward aTheory of Organizational Creativity, Academy of Management Review, April 1993, p.

309.


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Innovation

Variables


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Stimulating Innovation

Structural Variables

Adopt an organic structure

Make available plentiful resources

Engage in frequent inter-unit communication

Minimize extreme time pressures on creative activities

Provide explicit support for creativity


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Stimulating Innovation (contd.)

Cultural Variables

Accept ambiguity

Tolerate the impractical

Have low external controls

Tolerate risk taking

Tolerate conflict

Focus on ends rather than means

Develop an open-system focus

Provide positive feedback


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Stimulating Innovation (contd.)

Human Resource Variables

Actively promote training and development to keep employees

skills current.

Offer high job security to encourage risk taking.

Encourage individual to be champions of change. Idea Champion

Dynamic self-confident leaders who actively and

enthusiastically inspire support for new ideas, build support,

overcome resistance, and ensure that innovations are

implemented.


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Forces for Change

Nature of the Workforce

Greater diversity

Technology

Faster, cheaper, more mobile

Economic Shocks

Mortgage meltdown

Competition

Global marketplace

Social Trends

Baby boom retirements World Politics

Iraq War and the opening of China


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Planned Change

Change

Making things different

Planned Change

Activities that are proactive and purposeful: an intentional,

goal-oriented activity

Goals of planned change

Improving the ability of the organization to adapt to changes in

its environment

Changing employee behavior

Change Agents

Persons who act as catalysts and assume the responsibility

for managing change activities


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The Politics of Change

Impetus for change is likely to come

from outside change agents, newemployees, or managers outside themain power structure.

Internal change agents are most

threatened by their loss of status inthe organization.

Long-time power holders tend toimplement incremental but not radical

change. The outcomes of power struggles in

the organization will determine thespeed and quality of change.


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Lewins Three-Step Change Model

Unfreezing

Change efforts to overcome the pressures of both individual

resistance and group conformity

Refreezing

Stabilizing a change intervention by balancing driving and

restraining forces

Unfreeze Move Refreeze


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Lewin: Unfreezing the Status Quo

Driving Forces

Forces that direct behavior away from the status quo

Restraining Forces

Forces that hinder movement from the existing equilibrium


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Kotters Eight-Step Plan

Builds from Lewins Model

To implement change:

1. Establish a sense of urgency

2. Form a coalition

3. Create a new vision

4. Communicate the vision

5. Empower others by removing barriers

6. Create and reward short-term wins

7. Consolidate, reassess, and adjust

8. Reinforce the changes

Unfreezing

Movement

Refreezing


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Action Research

A change process based on systematic collection of data

and then selection of a change action based on what theanalyzed data indicates

Process steps:

1. Diagnosis

2. Analysis3. Feedback

4. Action

5. Evaluation

Action research benefits:

Problem-focused rather than solution-centered

Heavy employee involvement reduces resistance to change


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Creating a Culture for Change: Innovation

1. Stimulating a Culture of Innovation

Innovation: a new idea applied to initiating or improving

a product, process, or service

Sources of Innovation:

Structural variables: organic structures

Long-tenured management

Slack resources

Interunit communication

Idea Champions: Individuals who actively promote the

innovation


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Creating a Culture for Change: Learning

2. Learning Organization

An organization that has developed the continuous

capacity to adapt and change

Characteristics

Holds a shared vision

Discards old ways of thinking

Views organization as system of relationships

Communicates openly

Works together to achieve shared vision


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Creating a Learning Organization

Overcomes traditional organization problems:

Fragmentation

Competition

Reactiveness

Manage Learning by:

Establishing a strategy

Redesigning the organizations structure

Flatten structure and increase cross-functional activities

Reshaping the organizations culture

Reward risk-taking and intelligent mistakes


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Work Stress

Stress

A dynamic condition in which an individual is confrontedwith an opportunity, constraint, or demand related to what heor she desires and for which the outcome is perceived to be

both uncertain and important

Types of Stress

Challenge Stressors

Stress associated with workload, pressure to complete tasks,and time urgency

Hindrance Stressors

Stress that keeps you from reaching your goals, such as redtape

Cause greater harm than challenge stressors


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Demands-Resources Model of Stress

Demands

Responsibilities, pressures, obligations, and uncertainties in

the workplace

Resources

Things within an individuals control that can be used to

resolve demands

Adequate resources help reduce the stressful nature of

demands


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A Model of Stress


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Potential Sources of Stress

Environmental Factors

Economic uncertainties of the business cycle

Political uncertainties of political systems

Technological uncertainties of technical innovations

Organizational Factors

Task demands related to the job

Role demands of functioning in an organization

Interpersonal demands created by other employees

Personal Factors Family and personal relationships

Economic problems from exceeding earning capacity

Personality problems arising from basic disposition


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Consequences of Stress

Stressors are additive: high levels of stress can lead to

the following symptoms

Physiological

Blood pressure, headaches, stroke

Psychological

Dissatisfaction, tension, anxiety, irritability, boredom, and

procrastination

Greatest when roles are unclear in the presence of conflicting

demands

Behavioral Changes in job behaviors, increased smoking or drinking,

different eating habits, rapid speech, fidgeting, sleep disorders


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Not All Stress Is Bad

Some level of stress can increase productivity

Too little or too much stress will reduce performance

This model is not empirically supported


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Managing Stress

Individual Approaches

Implementing time management

Increasing physical exercise

Relaxation training

Expanding social support network

Organizational Approaches

Improved personnel selection and job placement

Training

Use of realistic goal setting

Redesigning of jobs

Increased employee involvement Improved organizational communication

Offering employee sabbaticals

Establishment of corporate wellness programs


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Global Implications

Organizational Change

Culture varies peoples belief in the possibility of change

Time orientation will affect implementation of change

Reliance on tradition can increase resistance to change

Power distance can modify implementation methods

Idea champions act differently in different cultures

Stress

Job conditions that cause stress vary across cultures

Stress itself is bad for everyone

Having friends and family can reduce stress


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Summary and Managerial Implications

Organizations and the individuals within them must

undergo dynamic change

Managers are change agents and modifiers of

organizational culture

Stress can be good or bad for employees

Despite possible improvements in job performance

caused by stress, such improvements come at the cost

of increased job dissatisfaction

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Managing Change for Organizational Development

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