Chapter 19 Organization Change and Development 2010 SouthWestern

Chapter 19 Organization Change and Development © 2010 South-Western, a part of Cengage Learning All rights reserved. Prepared by Charlie Cook The University of West Alabama

Chapter Learning Objectives After studying this chapter you should be able to: • Summarize the dominant forces for change in organizations. • Describe the process of planned organization change. • Discuss several approaches to organization development. • Explain resistance to change. • Identify the keys to managing successful organization change and development. © 2009 South-Western, a part of Cengage Learning 2

Forces for Change Areas of Pressure for Change People Technology © 2009 South-Western, a part of Cengage Learning Information Processing and Communication Competition 3

Table 19. 1 Pressures for Organization Change © 2009 South-Western, a part of Cengage Learning 4

Processes for Planned Organization Change • Lewin’s Process Model Ø Planned organization change requires a systematic process of movement from one condition to another • Unfreezing – Process by which people become aware of the need for change • Change – Movement from the old way of doing things to a new way • Refreezing – Process of making new behaviors relatively permanent and resistant to further change © 2009 South-Western, a part of Cengage Learning 5

Figure 19. 1 Lewin’s Process of Organizational Change © 2009 South-Western, a part of Cengage Learning 6

Processes for Planned Organization Change (cont’d) • The Continuous Change Process Model Ø Incorporates the forces for change, a problem-solving process, a change agent, and transition management Ø Takes a top management perspective • Perceives forces and trends that indicate need for change • Determines alternatives for change • Selects the appropriate alternative © 2009 South-Western, a part of Cengage Learning 7

Figure 19. 2 Continuous Change Process Model of Organization Change © 2009 South-Western, a part of Cengage Learning 8

Processes for Planned Organization Change (cont’d) • The Continuous Change Process Model (cont’d) Ø Change agent: a person responsible for managing a change effort • Assists management with problem recognition/definition • Can be involved in generating/evaluating potential action plans • Can be from inside or outside of the organization • Implements the change • Measures, evaluates, controls the desired results Ø Transition management • Process of systematically planning, organizing, and implementing change © 2009 South-Western, a part of Cengage Learning 9

Organization Development • Organization Development (OD) Ø The process of planned change/improvement of the organization through the application of knowledge of the behavioral sciences • System-Wide Organizational Development Ø Structural Change • Is a comprehensive system-wide rearrangement of task division, authority, reporting relationships • Affects performance appraisal and rewards, decision-making, communication, information-processing systems © 2009 South-Western, a part of Cengage Learning 10

Organization Development (cont’d) Contemporary Approaches to System-Wide OD Reengineering © 2009 South-Western, a part of Cengage Learning Rethinking Quality of Work Life 11

Figure 19. 3 Walton’s Categorization of Quality-of-Work-Life Programs Reference: Adapted from Richard E. Walton, “Quality of Work Life: What Is It? ” Sloan Management Review, Fall 1973, pp. 11– 21, by permission of the publisher. Copyright © 1973 by the Sloan Management Review Association. All rights reserved. © 2009 South-Western, a part of Cengage Learning 12

Organization Development (cont’d) • Task and Technological Change Ø Task redesign • Changing tasks involved in doing the work, the technology, or both Ø Technological change • Changing how inputs are transformed into outputs • Griffin’s integrated framework for introducing job changes • Nine steps that reflect the complexities of the interfaces between individual jobs and the total organization © 2009 South-Western, a part of Cengage Learning 13

Table 19. 2 Integrated Framework for Implementation of Task Redesign in Organizations Reference: Ricky W. Griffin, Task Design: An Integrative Framework (Glenview, IL: Scott, Foresman, 1982), p. 208. Used by permission. © 2009 South-Western, a part of Cengage Learning 14

OD: Group and Individual Change Training People-Oriented Change Techniques Management Development Team Building Survey Feedback © 2009 South-Western, a part of Cengage Learning 15

OD: Group and Individual Change (cont’d) • Training Ø Purpose: • Improve employees’ current job skills or impart new skills Ø Methods: • Lecture, discussion, lecture-discussion combination, experiential methods, case studies, films/video tapes Ø Locations: • Classroom, on and off company property, at a hotel, resort, and conference centers, and on-the-job Ø Major difficulty: • Transferring learning to the workplace © 2009 South-Western, a part of Cengage Learning 16

OD: Group and Individual Change (cont’d) • Management Development Programs Ø Multifaceted, complex, long-term process with no quick and simple approach: • Organizations should identify carefully and systematically their unique development needs and existing programs • Management development objectives must be compatible with organizational objectives • The utility and value of management development is not proven © 2009 South-Western, a part of Cengage Learning 17

OD: Group and Individual Change (cont’d) Team Building Goals To set team goals and priorities To analyze and allocate the way work is performed © 2009 South-Western, a part of Cengage Learning To examine how a group is working To examine relationships among those doing the work 18

OD: Group and Individual Change (cont’d) • Survey Feedback Ø Provides information about employees’ beliefs and attitudes Ø Can assist management with problem-solution diagnosis Ø Data are returned to employee groups at all organization levels Ø Data are used by all Digital Vision at Getty Images® © 2009 South-Western, a part of Cengage Learning employees working together in their normal work groups to identify/solve problems 19

Figure 19. 4 The Survey Feedback Process © 2009 South-Western, a part of Cengage Learning 20

Resistance to Change • The Resistance to Change Paradox Ø Organizations invite change when change offers competitive advantage Ø Organizations resist change when change threatens the organization’s structure and control systems Ø Organizations must balance stability (permanence) with the need to react to external shifts (change) Ø Resistance can warn of the need to reexamine the need for change © 2009 South-Western, a part of Cengage Learning 21

Resistance to Change: Sources of Resistance to Change (Katz and Kahn) • Organizational Sources • Individual Sources Ø Overdetermination Ø Habit Ø Narrow focus of change Ø Security Ø Group inertia Ø Economic factors Ø Threatened expertise Ø Fear of the unknown Ø Threatened power Ø Lack of awareness Ø Resource allocation Ø Social factors changes © 2009 South-Western, a part of Cengage Learning 22

Table 19. 3 Organizational and Individual Sources of Resistance © 2009 South-Western, a part of Cengage Learning 23

Managing Successful Organization Change and Development • Keys to Managing Change in Organizations Ø Consider international issues Ø Take a holistic view Ø Start small Ø Secure top management support Ø Encourage participation by those affected by the change Ø Foster open communication Ø Reward those who contribute to change © 2009 South-Western, a part of Cengage Learning 24

Table 19. 4 Keys to Managing Successful Organization Change and Development © 2009 South-Western, a part of Cengage Learning 25

Organizational Behavior in Action • After reading the chapter: Ø In the chapter opening case, how does the return of Michael Dell to Dell compare with the return of Howard Schultz to Starbuck’s? Ø Which pressures for organizational change are likely to increase when economic conditions decline? When they improve? Ø Which individual source of resistance to change likely causes students to perform poorly in school? How could the resistance be overcome? © 2009 South-Western, a part of Cengage Learning 26