18 Organizational Change and Development

1. 18 Organizational Change and Development

2. Learning 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

3. Learning 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

4. Xerox • What is Mulcahy’s approach to change?

5. Organizational Change • Organizational change is the movement of an organization away from its present state and toward some desired future state to increase its effectiveness • Reengineering • TQM • Innovation • Restructuring

6. Exhibit 18.1a Forces for Change • Competitive • Economic and political • Global • Demographic and social • Ethical

7. Group Group norms Group cohesiveness Groupthink/escalation of commitment Individual Uncertainty/insecurity Selective perception Habit Organizational Power and conflict Differences in functional orientation Mechanistic structure Organizational culture Exhibit 18.1b Impediments to Change

8. Change in Nike’s Practices

9. Lewin’s Force-Field Theory of Change • Forces resist change • Forces push change • Performance levels • P1 = Balance • P2 = Increase forces for change, reduce forces for change, or both

10. Exhibit 18.2 Lewin’s Force-Field Theory of Change

11. Categories of Change • Evolutionary change is change that is gradual, incremental, and narrowly focused • Revolutionary change is change that is rapid, dramatic, and broadly focused

12. Toyota’s Commitment to Continuous Improvement

13. Instruments of Evolutionary Change Socio-technical systems theory Total quality management

14. Instruments of Revolutionary Change Reengineering Restructuring Innovation

15. Reengineering at Chrysler

16. Restructuring at Gateway

17. Exhibit 18.3 Lewin’s Three-Step Change Process

18. Action Research • Action research is 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

19. Exhibit 18.4 Steps in Action Research 1. Diagnosing organization 2. Determining desired state 3. Implementing action 4. Evaluating action 5. Institutionalizing action research

20. Implementing Action • Identify possible impediments to change • Decide who will be responsible • External change agents • Internal change agents • Decide specific change strategy

21. Change Agents External Internal

22. Top-down Implemented by managers at a high level in organization Result of radical restructuring and reengineering More resistance Bottom-up Implemented by employees at low levels and rises over time All levels involved in change process Less resistance Types of Change

23. Organizational Development • Organizational development is a series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization

24. OD Techniques to Deal with Resistance to Change • Education and Communication • Participation and Empowerment • Facilitation • Bargaining and Negotiation • Manipulation • Coercion

25. OD Techniques to Promote Change • Counseling • Sensitivity Training • Process Consultation • Team Building • Intergroup Training • Total Organizational Interventions