Ch16

Ch16

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  Presentation Slides toAccompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr. Chapter 16 —Guiding Organizational Change
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  Slide 16.1 LearningObjectives for Guiding Organizational Change Identify pressures for change, two types of change programs, and how to perform an organizational diagnosis Diagnose reasons for individual and organizational resistance to change and methods for overcoming it Discuss methods for promoting change Describe ethical issues posed by organizational change
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  Slide 16.2 Pressuresfor Change The globalization of markets The spread of information technology and computer networks Changes in the nature of the workforce employed by organizations
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  Slide 16.3 Sourcesof Globalization Pressures Economic recoveries of Germany and Japan after their defeat in World War II Emergence of “newly industrialized” countries Dramatic shift from planned economies to market economies that has occurred to a greater or lesser extent in former communist block countries Emergence of new “power blocks” of international traders
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  Slide 16.4 Positiveand Negative effects of Information Technology Positive effects Changing almost everything about a company Increasing the value of invisible assets Democratizing a company Increasing the flexibility of work Allowing companies to unify their global operations and to work a 24-hour day throughout the world   Negative effects Increased vulnerability to sabotage, espionage, and vandalism Creation of new social divisions based on differences in computer literacy
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  Slide 16.5 PrimaryChanges in the Workforce Increasing diversity in terms of gender and ethnicity Dual-career families are becoming the norm Continued growth in the contingent workforce Workforce is becoming better educated Workforce is becoming less unionized Changing values and expectations of the workforce
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  Slide 16.6 Approachesto Change MEANS ECONOMIC ORGANIZATIONAL DEVELOPMENT Purpose Profit Develop employees’ competencies Leadership Focus Motivation Top-down Participative Structure and strategy Culture Incentives lead performance Incentives lag performance
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  Slide 16.7 InitiativesContributing to Effective Change Management Motivating Change Creating a Vision Developing Political Support Managing the Transition Sustaining Momentum Effective Change Management Source: Adapted with permission from Cummings, J. G., and Worley, C. G. Organization Development and Change , 7 th ed. Cincinnati: South-Western, 2001, 155.
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  Slide 16.8 EssentialConditions for Carrying Out Effective Change Programs The organization’s members must be the key source of energy for change Key members of the organization must recognize the need for change and be attracted by the potentially positive outcomes of the change program A willingness to change norms and procedures must exist
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  Slide 16.9 DiagnosticModel of Change Culture Teams Reward Systems Organizational Systems Leadership Organization Design Individuals
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  Slide 16.10 EmployeeReadiness for Change Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the chances for success. Organizational Dynamics , Spring 1989, 37. Perceived Personal Risk from Change Level of Dissatisfaction with the Current Situation Low Low High High High readiness for change Moderate to indeterminate readiness for change Low readiness for change Moderate to indeterminate readiness for change
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  Slide 16.11 Sourcesof Resistance to Change Individual Resistance * Perception * Personality * Habit * Threats to power and influence * Fear of the unknown * Economic reasons Organizational Resistance * Organization design * Organizational culture * Resource limitations * Fixed investments * Interorganizational agreements Resistance to Change
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  Slide 16.12 ForceField Analysis Source: Adapted from Zand, D. E. Force field analysis. In N. Nicholson (ed.), Blackwell Encyclopedic Dictionary of Organizational Behavior . Oxford, England: Blackwell, 1995, 181. Current level of group performance Desired level of group performance Driving forces High performance goals New equipment Competition Employees with new skills Desire for increased influence and rewards Group norms for output Familiarity with present equipment Complacency Need to learn new skills Fear of reduced influence and rewards Resisting forces
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  Slide 16.13 Lewin’sThree-Step Change Process Unfreezing Usually involves reducing those forces maintaining the organization’s behavior at its present level Moving Shifts the organization’s behaviors to a new level Refreezing Stabilizes the organization at a new state of equilibrium
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  Slide 16.14 Componentsof Successful Methods for Overcoming Resistance to Change Empathy and support To aid in understanding how employees are experiencing change Communication To reduce gossip and unfounded fears, thereby reducing uncertainty about the potential consequences of change Participation and involvement To increase employee ownership of and commitment to the change
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  Slide 16.15 TheTeam Performance Curve Potential team Real team High-performance team Working group TEAM EFFECTIVENESS Low High Low High PERFORMANCE IMPACT Source: Adapted from Katzenbach, J. R., and Smith, D. K. The Wisdom of Teams . Boston: Harvard Business School Press, 1993, 84.
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  Slide 16.16 TeamBuilding Activities Contributing information concerning their perceptions of issues, problems, and working relationships Analyzing the information and diagnosing work-related problems Planning specific actions and assigning individuals to implement them Evaluating their plans and progress in achieving those plans
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  Slide 16.17 IssuesAddressed by Successful Cultural Change Capitalize on dramatic opportunities Combine caution with optimism Understand resistance to cultural change Change many elements but maintain some continuity Recognize the importance of implementation Modify socialization tactics Find and cultivate innovative leadership
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  Slide 16.18 EthicalIssues in Organizational Change Selection of a change approach Selection of a change target Managerial responsibilities Manipulation