Chapter 14

1. Chapter 14 Organizational Change

2. Forces for Change • Types of Organizational Change • Managing Organizational Change • Resistance to Change • Caveats on Undergoing Change

3. Nature of the work force Technology Economic shocks Competition Forces for Change

4. What are the change options? Physical Culture Structure Technology People setting Exhibit 14-1Change Options

5. What Do Organizations Change? • Culture • changing the underlying values and goals of the organization • Structure • altering authority relations, coordination mechanisms, job redesign, or similar structural variables • Technology • modifying how work is processed and methods and equipment used

6. What Do Organizations Change? • Physical Settings • altering the space and layout arrangements in the workplace • People • changes in employee skills, expectations and/or behaviour

7. Total Quality Management • Philosophy of management that’s driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes • seeks to reduce variability in output, resulting in lower costs and higher quality

8. Exhibit 14-2 What Is Total Quality Management? • Intense focus on the customer • Concern for continuous improvement • Improvement in the quality of everything the organization does • Accurate measurement • Empowerment of employees

9. Why TQM Fails • Some firms were not performing TQM, just calling it that • Some managers have unrealistic expectations, and effect results too quickly • Some programs did not assure employees’ job security • Some firms did not provide adequate training • Some firms did not appreciate the complexity of changes involved

10. Elements of Re-engineering • Identifying an organization’s distinctive competencies • Assessing core processes • Reorganizing horizontally by process

11. TQM Incremental improvements Bottom-up participative decision-making Re-engineering Quantum leaps in performance Driven by top management Re-engineering versus TQM

12. Unfreezing Moving Refreezing Exhibit 14-4 Lewin’s Three-Step Change Model

13. Implementing Change • Unfreezing: getting ready for change • Minimizing resistance • Moving: making the change • Changing people (individuals and groups); Tasks; Structure; Technology • Refreezing: stabilizing the change • Reinforcing outcomes, evaluating results, making constructive modifications

14. Exhibit 14-7 Sources of Individual Resistance to Change Selective Habit information processing Individual Resistance Security Fear of the unknown Economic factors

15. Cynicism About Change • Feeling uninformed about what was happening • Lack of communication and respect from one’s supervisor • Lack of communication and respect from one’s union representative • Lack of opportunity for meaningful participation in decision-making

16. Threat to established Structural resource allocations inertia Threat to established Limited focus Organizational power relationships of change Resistance Group Threat to inertia expertise Exhibit 14-9 Sources of Organizational Resistance to Change

17. Overcoming Resistance to Change • Education and Communication • This tactic assumes that the source of resistance lies in misinformation or poor communication. • Participation • Prior to making a change, those opposed can be brought into the decision process. • Facilitation and Support • The provision of various efforts to facilitate adjustment.

18. Overcoming Resistance to Change • Negotiation • Exchange something of value for a lessening of resistance. • Manipulation and Cooperation • Twisting and distorting facts to make them appear more attractive. • Coercion • The application of direct threats or force upon resisters.