Understanding And Managing Organizational Behavior Chapter 18 Organizational

Understanding And Managing Organizational Behavior Chapter 18: Organizational Change and Development 4 th Edition JENNIFER GEORGE & GARETH JONES 18 -1 © 2005 Prentice Hall

Chapter Objectives § Appreciate the forces that lead to organization change and the various impediments to change that arise during the change process § Distinguish between evolutionary and revolutionary change and identify the main types of each of these kinds of change processes 18 -2 © 2005 Prentice Hall

Chapter Objectives § Discuss the main steps involved in action research and identify the main issues that must be addressed to manage the change process effectively § Understand the process of organization development and how to use various change techniques to facilitate the change process 18 -3 © 2005 Prentice Hall

Opening Case: Toyota is a Master at Managing Change § Why is change important at Toyota? 18 -4 © 2005 Prentice Hall

What is Organizational Change? § Movement of an organization away from its present state and toward some desired future state to increase its effectiveness – Reengineering – TQM – Innovation – Restructuring 18 -5 © 2005 Prentice Hall

Table 18. 1 Forces for and Impediments to Change Forces for Change § Competitive § Economic and political § Global § Demographic and social § Ethical 18 -6 Impediments § Power and conflict § Differences in functional orientation § Mechanistic structure § Organizational culture § Group norms § Uncertainty/ insecurity § Habit © 2005 Prentice Hall

Lewin’s Force-Field Theory of Change § Forces resist change § Forces push change § Performance levels – P 1 = Balance – P 2 • Increase forces for change, • reduce forces for change, or • both 18 -7 © 2005 Prentice Hall

Categories of Change § Evolutionary Change: Change that is gradual, incremental, and narrowly focused. § Revolutionary Change: Change that is rapid, dramatic, and broadly focused. 18 -8 © 2005 Prentice Hall

Instruments of Evolutionary Change § Socio-technical systems theory § Total quality management 18 -9 © 2005 Prentice Hall

Instruments of Revolutionary Change § Reengineering § Restructuring § Innovation 18 -10 © 2005 Prentice Hall

Figure 18. 2 Lewin’s Three Step Change Process § Unfreeze § Change § Refreeze 18 -11 © 2005 Prentice Hall

Managing Change: Action Research A strategy for generating and acquiring knowledge that managers can use to define an organization’s desired future state and to plan a change program that allows the organization to reach that state 18 -12 © 2005 Prentice Hall

Figure 18. 3 Steps in Action Research § § § 18 -13 Diagnosing organization Determining desired state Implementing action Evaluating action Institutionalizing action research © 2005 Prentice Hall

Implementing Action § Identify possible impediments to change § Decide who will be responsible – External change agents – Internal change agents § Decide specific change strategy 18 -14 © 2005 Prentice Hall

Change Agents External § Outside consultants who are experts at managing change 18 -15 Internal § Managers from within the organization who are knowledgeable about the situation © 2005 Prentice Hall

Types of Change Top-down § Implemented by managers at a highlevel in organization § Result of radical restructuring and reengineering § More resistance 18 -16 Bottom-up § Implemented by employees at low levels and rises over time § All levels involved in change process § Less resistance © 2005 Prentice Hall

Organization Development A series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization. 18 -17 © 2005 Prentice Hall

OD Techniques to Deal with Resistance to Change § § § 18 -18 Education and Communication Participation and Empowerment Facilitation Bargaining and Negotiation Manipulation Coercion © 2005 Prentice Hall

OD Techniques to Promote Change § § § 18 -19 Counseling Sensitivity Training Process Consultation Team Building Intergroup Training Total Organizational Interventions © 2005 Prentice Hall