Managing Organizational Change Chapter 16 Copyright 2011 Pearson

Managing Organizational Change Chapter 16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -1

Learning Objectives 1. Characterize the prevalence of the change process in organizations. 2. Understand what, exactly, is changed when organizational change comes about, and the forces responsible for unplanned organizational change. 3. Describe what is meant by strategic planning and the types of strategic changes that organizations make. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -2

Learning Objectives 4. Identify the ten steps in the strategic planning process. 5. Explain why people are resistant to organizational change and how this resistance may be overcome. 6. Identify and describe the major organizational development techniques that are used today. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -3

Change Targets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -4

Changing People Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -5

Change Magnitude Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -6

Unplanned Change Forces § Shifting employee demographics § Performance gaps § Government regulation § Global competition § Fluctuating economic conditions § Advances in technology Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -7

Strategic Planning The process of formulating, implementing, and evaluating decisions that enable an organization to achieve its objectives Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -8

Strategic Planning § Is deliberate § Occurs when current objectives can no longer be met § New organizational objectives require new strategic plans Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -9

Strategic Planning Targets § Products and services § Organizational structure § Downsizing § Rightsizing § Outsourcing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -10

Strategic Planning Process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -11

Various Competitive Strategies Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -12

Individual Barriers to Change § Economic insecurity § Fear of the unknown § Threats to social relationships § Habit § Failure to recognize need for change Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -13

Organizational Barriers to Change § Structural inertia § Work group inertia § Threats to existing balance of power § Previously unsuccessful change efforts Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -14

Resistance to Change Factors Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -15

Overcoming Organizational Change Resistance § Shape political dynamics § Identify and neutralize change resisters § Educate the workforce § Involve employees in the change efforts § Reward constructive behaviors § Take the situation into account Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -16

Sell the Need for Change Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -17

Create a Learning Organization § Establish commitment to change § Adopt an informal organizational structure § Develop an open organizational culture Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -18

Organizational Development Management by Objective Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -19

Organizational Development Survey Feedback Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -20

Organizational Development Appreciative Inquiry § Discovery § Dreaming § Designing § Delivering Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -21

Organizational Development § Action labs § Quality of work life programs § Work restructuring § Quality circles Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -22

Organizational Development Effectiveness § More effective among blue-collar workers § Enhanced by using technique combination § Depends on degree of top management support Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -23

National Values and Organizational Development Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 -24

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