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Topic 14 - Organizational Change

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19 views18 pages

Topic 14 - Organizational Change

Uploaded by

Zaw Zaw Aung
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Topic 14:

Organizational Change

18-1

Copyright © 2015 Pearson Education Ltd.


Learning Objectives
After studying this chapter, you should be able to:
Identify forces for change
Contrast planned and unplanned change.
Describe the sources of resistance to change.
Identify the strategies of overcoming resistance to
change.
Compare the four main approaches to managing
organizational change.
Demonstrate ways of creating a culture for change.
18-2

Copyright © 2015 Pearson Education Ltd.


LO 1
Force for Change

18-3

Copyright © 2015 Pearson Education Ltd.


LO 2 Contrast Planned
and Unplanned Change
Planned Change
 Change involves making something different.
 When change is an intentional, goal-oriented
activity it is planned change.
 There are two goals of planned change:
Improve the ability of the organization to
adapt to changes in its environment.
Change employee behavior.
 Change agents are those responsible for
18-4
managing change activities.
Copyright © 2015 Pearson Education Ltd.
LO 3 Sources of Resistance
to Change

18-5

Copyright © 2015 Pearson Education Ltd.


LO 4 Overcoming Resistance
to Change
Overcoming Resistance to Change
1. Education and communication
2. Participation
3. Building support and commitment
4. Develop positive relationships
5. Implementing changes fairly
6. Manipulation and cooptation
7. Selecting people who accept change
8. Coercion 18-6

Copyright © 2015 Pearson Education Ltd.


LO 5
Managing Organizational Change

Approaches to managing change:


1. Lewin’s Three-Step Model (Exhibit 18-3)
2. Kotter’s Eight-Step Plan for Implementing
Change (Exhibit 18-5)
3. Action Research
4. Organizational Development

18-7

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Lewin Three-Step Model

18-8

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Lewin Three-Step Model

18-9

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Kotter Eight-Step Model

18-10

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Action Research
Action Research
 Action research is a change process based on the
systematic collection of data and selection of a change
action based on what the analyzed data indicate.
The process consists of five steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
 Action research provides at least two specific benefits:
It is problem focused.
It reduces resistance to change. 18-11

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Organizational Development
Organizational Development
 Organizational development (OD) is a collection
of change methods that try to improve
organizational effectiveness and employee well-
being.
 OD methods value human and organizational
growth, collaborative and participative processes,
and a spirit of inquiry.
 Focuses on how individuals make sense of their
work environment.
18-12

Copyright © 2015 Pearson Education Ltd.


LO 5 Managing Organizational Change
Organizational Development
 The underlying values in most OD efforts are:
 Respect for people.
 Trust and support.
 Power equalization.
 Confrontation.
 Participation.

18-13

Copyright © 2015 Pearson Education Ltd.


LO 6
Creating a Culture for Change

Stimulating a Culture of Innovation


 Innovation, a more specialized kind of change, is
a new idea applied to initiating or improving a
product, process, or services.
 Innovations can range from small incremental
improvements, such as netbook computers, to
radical breakthroughs, such as Nissan’s electric
Leaf car.
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Copyright © 2015 Pearson Education Ltd.


LO 6
Creating a Culture for Change
Sources of Innovation:
 Structural variables are the most studied potential
source of innovation.
Organic structures positively influence
innovation.
Long tenure in management is associated with
innovation.
Innovation is nurtured when there are slack
resources.
Inter-unit communication is high in innovative
18-15
organizations.
Copyright © 2015 Pearson Education Ltd.
LO 6
Creating a Culture for Change

Innovative organizations tend to have similar


cultures:
 They encourage experimentation.
 They reward both successes and failures.
 They celebrate mistakes.
Managers in innovative organizations recognize that
failures are a natural by-product of venturing into
the unknown.
18-16

Copyright © 2015 Pearson Education Ltd.


LO 6
Creating a Culture for Change

Innovative organizations:
 Actively promote the training and development of
their members so they keep current.
 Offer high job security so employees don’t fear
getting fired for making mistakes.
 Encourage individuals to become champions of
change.
Once a new idea is developed, idea champions
actively and enthusiastically promote it, build support,
overcome resistance, and ensure it’s implemented. 18-17

Copyright © 2015 Pearson Education Ltd.


Implications for Managers
 Consider that, as a manager, you are a change agent
in your organization. The decisions you make and
your role-modeling behaviors will help shape the
organization’s change culture.
 Your management policies and practices will
determine the degree to which the organization
learns and adapts to changing environmental
factors.

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Copyright © 2015 Pearson Education Ltd.

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