Change

Change Management
Management
Forces
Forces for
for Change
Change
 Nature of the Workforce
– Greater diversity
 Technology
– Faster, cheaper, more mobile
 Economic Shocks
– Mortgage meltdown
 Competition
– Global marketplace
 Social Trends
– Baby boom retirements
 World Politics
Planned
Planned Change
Change
 Change
– Making things different
 Planned Change
– Activities that are proactive and purposeful: an intentional,
goal-oriented activity
– Goals of planned change
• Improving the ability of the organization to adapt to changes in
its environment
• Changing employee behavior
 Change Agents
– Persons who act as catalysts and assume the responsibility
for managing change activities
Resistance
Resistance to
to Change
Change
Resistance to change appears to be a natural and
positive state
Forms of Resistance to Change:
– Overt and Immediate
• Voicing complaints, engaging in job actions
– Implicit and Deferred
• Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism
• Deferred resistance clouds the link between source and
reaction
 Sources
Sources of
of Resistance
Resistance to
to Change
Change

.
Tactics
Tactics for
for Overcoming
Overcoming Resistance
Resistance to
to Change
Change
 Education and Communication
– Show those effected the logic behind the change
 Participation
– Participation in the decision process lessens resistance
 Building Support and Commitment
– Counseling, therapy, or new-skills training
 Implementing Change Fairly
– Be consistent and procedurally fair
 Manipulation and Cooptation
– “Spinning” the message to gain cooperation
 Selecting people who accept change
– Hire people who enjoy change in the first place
 Coercion
– Direct threats and force
The
The Politics
Politics of
of Change
Change
 Impetus for change is likely to come
from outside change agents, new
employees, or managers outside the
main power structure.
 Internal change agents are most
threatened by their loss of status in
the organization.
 Long-time power holders tend to
implement incremental but not
radical change.
 The outcomes of power struggles in
the organization will determine the
speed and quality of change.
Lewin’s
Lewin’s Three-Step
Three-Step Change
Change Model
Model
 Unfreezing
– Change efforts to overcome the pressures of both individual
resistance and group conformity
 Refreezing
– Stabilizing a change intervention by balancing driving and
restraining forces
Lewin:
Lewin: Unfreezing
Unfreezing the
the Status
Status Quo
Quo
 Driving Forces
– Forces that direct behavior away from the status quo
 Restraining Forces
– Forces that hinder movement from the existing equilibrium

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Kotter’s
Kotter’s Eight-Step
Eight-Step Plan
Plan
 Builds from Lewin’s Model

 To implement change:
1. Establish a sense of urgency
2. Form a coalition
Unfreezing
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term “wins” Movement
7. Consolidate, reassess, and adjust
8. Reinforce the changes Refreezing

19-10
Action
Action Research
Research
– A change process based on systematic collection of data and
then selection of a change action based on what the analyzed
data indicates
 Process steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
 Action research benefits:
– Problem-focused rather than solution-centered
– Heavy employee involvement reduces resistance to change

19-11
 Organizational
Organizational Development
Development
 Organizational Development (OD)
– A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
 OD Values
– Respect for people
– Trust and support
– Power equalization
– Confrontation
– Participation

Dr.Deepa Nair 19-12

 Six
Six OD
OD Techniques
Techniques
1. Sensitivity Training
– Training groups (T-groups) that seek to change behavior through
unstructured group interaction
– Provides increased awareness of others and self
– Increases empathy with others, listening skills, openness, and
tolerance for others
2. Survey Feedback Approach
– The use of questionnaires to identify discrepancies among member
perceptions; discussion follows and remedies are suggested
3. Process Consultation (PC)
– A consultant gives a client insights into what is going on around
the client, within the client, and between the client and other
people; identifies processes that need improvement.

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 Six
Six OD
OD Techniques
Techniques (Continued)
(Continued)
4. Team Building
– High interaction among team members to increase trust and
openness
5. Intergroup Development
– OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
6. Appreciative Inquiry
– Seeks to identify the unique qualities and special strengths of
an organization, which can then be built on to improve
performance
• Discovery: Recalling the strengths of the organization
• Dreaming: Speculation on the future of the organization
• Design: Finding a common vision
• Destiny: Deciding how to fulfill the dream

Dr. Deepa Nair 19-14

Creating
Creating aa Culture
Culture for
for Change:
Change: Innovation
Innovation
1. Stimulating a Culture of Innovation
– Innovation: a new idea applied to initiating or improving a
product, process, or service

– Sources of Innovation:
• Structural variables: organic structures
• Long-tenured management
• Slack resources
• Interunit communication

– Idea Champions: Individuals who actively promote the

innovation

19-15
Creating
Creating aa Culture
Culture for
for Change:
Change: Learning
Learning
2. Learning Organization
– An organization that has developed the continuous capacity
to adapt and change
– Learning Types
• Single-Loop: errors are corrected using past routines
• Double-Loop: errors are corrected by modifying routines
– Characteristics
• Holds a shared vision
• Discards old ways of thinking
• Views organization as system of relationships
• Communicates openly
• Works together to achieve shared vision

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Creating
Creating aa Learning
Learning Organization
Organization
 Overcomes traditional organization problems:
– Fragmentation
– Competition
– Reactiveness

 Manage Learning by:

– Establishing a strategy
– Redesigning the organization’s structure
• Flatten structure and increase cross-functional activities
– Reshaping the organization’s culture
• Reward risk-taking and intelligent mistakes

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Work
Work Stress
Stress
 Stress
– A dynamic condition in which an individual is confronted
with an opportunity, constraint, or demand related to what he
or she desires and for which the outcome is perceived to be
both uncertain and important
 Types of Stress
– Challenge Stressors
• Stress associated with workload, pressure to complete tasks,
and time urgency
– Hindrance Stressors
• Stress that keeps you from reaching your goals, such as red
tape
• Cause greater harm than challenge stressors

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Demands-Resources
Demands-Resources Model
Model of
of Stress
Stress
 Demands
– Responsibilities, pressures, obligations, and uncertainties in
the workplace
 Resources
– Things within an individual’s control that can be used to
resolve demands
 Adequate resources help reduce the stressful nature of
demands

19-19
AA Model
Model of
of Stress
Stress

19-20
Potential
Potential Sources
Sources of
of Stress
Stress
 Environmental Factors
– Economic uncertainties of the business cycle
– Political uncertainties of political systems
– Technological uncertainties of technical innovations
 Organizational Factors
– Task demands related to the job
– Role demands of functioning in an organization
– Interpersonal demands created by other employees
 Personal Factors
– Family and personal relationships
– Economic problems from exceeding earning capacity
– Personality problems arising from basic disposition
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Consequences
Consequences of
of Stress
Stress
 Stressors are additive: high levels of stress can lead to
the following symptoms
– Physiological
• Blood pressure, headaches, stroke
– Psychological
• Dissatisfaction, tension, anxiety, irritability, boredom, and
procrastination
• Greatest when roles are unclear in the presence of conflicting
demands
– Behavioral
• Changes in job behaviors, increased smoking or drinking,
different eating habits, rapid speech, fidgeting, sleep disorders

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Not
Not All
All Stress
Stress IsIs Bad
Bad
 Some level of stress can increase productivity
 Too little or too much stress will reduce performance
 This model is not empirically supported

19-23
Managing
Managing Stress
Stress
 Individual Approaches
– Implementing time management
– Increasing physical exercise
– Relaxation training
– Expanding social support network
 Organizational Approaches
– Improved personnel selection and job placement
– Training
– Use of realistic goal setting
– Redesigning of jobs
– Increased employee involvement
– Improved organizational communication
– Offering employee sabbaticals
– Establishment of corporate wellness programs

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