Week 12 Organizational Change MGT 30525 ORGANIZATIONAL BEHAVIOR

Week 12 – Organizational Change MGT 30525 - ORGANIZATIONAL BEHAVIOR Dr. K. A. S. P. Kaluarachchi Senior Lecturer Department of Management and Organization Studies Faculty of Management and Finance University of Colombo 1

Learning Outcomes At the end of this lesson, you will be able to: § Define the concept of organizational change § Identify types of organizational changes § Identify resistances to organizational change and how to manage them § Illustrate and describe an approach to organizational change 9/25/2020 2

Define Organizational Change Organizational change refers to any alteration of: people structure, or technology in an organization It is making things different Someone who acts as a catalyst and assumes the responsibility for managing the change process is recognized as the change agent 9/25/2020 3

Types of Organizational Changes (1) Changing structure – includes any alteration in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign (2) Changing technology – encompasses modifications in the way work is performed or the methods and equipments used (3) Changing people – refers to changes in attitudes, expectations, perceptions, and behavior of individuals or groups (OD) 4 9/25/2020 4 4

Types of Organizational Change… Organizational Development (OD) is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships A technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving he differences by using survey information in feedback groups A method of changing behavior through unstructured group interaction Sensitivity training Survey feedback An outside consultant helps the manager understand how interpersonal processes affect the way work 2020/9/25 More effective interpersonal work relationships Process consultation Team building Inter-group development - Popular OD techniques - Activities that help members learn how each member thinks and works Changing the attitudes, stereotypes, and perceptions hat work groups have about each other 5

Resistances to Organizational Change Individual Sources Organizational Sources Habits – when confronted with change, the tendency to respond our accustomed ways becomes a source of resistance Structure – formalized regulations which have been stabilized act as counterbalance to sustain change Security – people assume change threatens their feeling of safety Dependence – interdependence among subsystems hinder the actions of change Economic reasons – people are concerned that they won’t be able to perform the new task when pay is considered to evaluate performance Group norms – even if individuals want to change their behavior, group norms may act as a constraint Fear for the unknown – change substitutes ambiguity and uncertainty for the unknown Threat to expertise – changes in organizational patterns may threaten the expertise of specialized groups Selective perception – people hear what they want to hear and they ignore information that challenges the world they have created Threat to power – change can threaten longestablished power relationship within the organization Resource limitation – the needed change can be limited with the available resources 2020/9/25 6

Overcoming Resistances to Change Education and communication – helps employees see the logic of OC Participation – individuals feel difficult to resist a change decision in which they participated Building support and commitment – change agents can offer a range of supportive efforts to reduce resistance Implementing changes fairly – make sure employees see the reason for the change, and perceive that the changes 7 7 7 are 9/25/2020 being implemented consistently and fairly

Overcoming Resistances to Change… Manipulation and cooptation – distorting facts to make them appear more attractive. Cooptation is a form of both manipulation an participation Selecting people – selecting people who score high on accepting and facilitating the change process Coercion – the application of direct threats or force on the resisters 8 9/25/2020 8 8

Approaches to Managing Organizational Change Lewin’s Three-Step Model Unfreezing 2020/9/25 Movement Refreezing 9

Approaches to Managing Organizational Change… Unfreezing - the status quo; changing to overcome the pressures of both individual resistance and group conformity Movement – to a desired end state; a change process that transforms the organization from status quo to the desired state Refreezing – the new change to make it permanent; stabilizing a change intervention by balancing driving and resisting forces 10 9/25/2020 10 10

Questions and Answers ? ? // Thank you very much! 9/25/2020 11