Organizational Behavior MGT502 Lecture38 Summary of Lecture37 Organizational

Organizational Behavior (MGT-502) Lecture-38

Summary of Lecture-37

Organizational Change

Change or Disappear

Forces For Change External Forces • Economic Forces • Technology • Social and Political Change • Process • Behavioral Internal Forces

Types of Change Planned Unplanned Evolutionary Revolutionary

Today’s Topics

Change Rate of Technological Change 2, 500, 000 B. C. 1, 000 B. C. 2, 000 A. D.

Resistance To Change Individuals Habit Fear of unknown Economic threat New social relationships Dislike of change agent Dislike of implied criticism Organizations Threats to power Resource limitations Fixed investments

Driving Forces Changing technology Knowledge explosion Rapid product obsolescence Changing nature of workforce Changing values

Overcoming Resistance Coercion Resist Manipulation Negotiation Tolerate Education Participation Facilitation & Support Accept Support

Minimizing Resistance to Change Communication Coercion Negotiation Training Minimizing Resistance to Change Stress Management Employee Involvement

Managing Organizational Change

The Three C’s of Change • Customers take charge • Competition intensifies • Change becomes constant

A continuous challenge as customer expectations change and can sometimes change faster than organizations can respond

The New World of Work • Peoples’ roles change - from controlled to empowered • Job preparation changes - from training to education • Focus of performance measures and compensation shifts - from activities to results • Advancement criteria change - from protective to productive • Managers change - from supervisors to coaches • Organization structures change - from hierarchical to flat • Executives change - from scorekeepers to leaders

Change Can Be…. • • • Huge, catastrophic Predictable Positive Productive A small modification to your life • Taken in stride, managed • • • Small, incremental Unpredictable Negative Unproductive A devastating collapse of your world • Continuously stressful

Some External Forces for Change Information Technology Globalization & Competition Demography • Easier information transfer • Facilitates global structures • Requires new competencies and expectations • Facilitates telecommuting; new employment relationships • More emphasis on knowledge management

Some External Forces for Change Information Technology Globalization & Competition Demography • Global competition • Technology makes it easier to compete quickly • Results in restructuring, outsourcing, mergers – produces many employment changes

Some External Forces for Change Information Technology Globalization & Competition Demography • More educated workforce – want involvement; interesting work • Younger generation – less intimidated by status – want a more balanced work life • Cultural changes – more individualism in traditionally collectivist countries

Areas Where Change Can Occur • Change Technology • Change the Organization’s Structure or Design • Change Job Responsibilities or tasks performed • Change People

Change Management Concept Model Strategy Organizational Structure Business Models/Systems Business Processes People

Change Management Success Factors People Business Processes Business Models/Systems Organizational Structure Strategy

Change Management Risk Alignment People Business Processes Business Models/Systems Organizational Structure Strategy

The Change Agent’s Role Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization The change agent can be internal or external

The Change Agent § Generators § § key change agents demonstrators patrons defenders § Implementers § external § internal § Adopters § early adopters § maintainers § users

Internal Change Agents Advantages § Better knowledge of the organization § Available more quickly § Lower out-of-pocket costs § A “known” quantity § More control & authority Disadvantages § May be too close to the problem § May be biased § May be viewed a part of the problem § Not available for previous job § Vested interest may reduce credibility

External Change Agents Advantages § More objective views § More diverse experience § May have more specific experience and knowledge Disadvantages § Less knowledge of the organization § Requires higher out-ofpocket costs § An unknown quantity § Longer start-up time § Hurts management’s image

What Can Change Agents Change? • Structure – Change Agents can alter one or more of the key elements in a an organization's design. • Technology – Competitive factors or innovations within an industry often require change agents to introduce new equipment, tools, or operating methods. – Physical Settings • People – Change agents help individuals and groups within the organization work more effectively together.

The Change Process § Two perspectives § “Break it”- ‘Change it” - ‘Freeze it” § Continuous renewal § Forces of change § Internal § External

Organizational Change Unfreezing Changing Refreezing Lewin’s Three-Step Process

p o t s s ’ e t r e e L it h

Summary

Managing Organizational Change

The Change Agent’s Role Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization The change agent can be internal or external

Organizational Change Unfreezing Changing Refreezing Lewin’s Three-Step Process

Next….

Organizational Behavior (MGT-502) Lecture-38