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Chapter 22 Managing Change

Chapter 22 Managing Change. Objectives. Describe the nature of change Explain the essential components in the change process Understand the leader’s role in the change process Define resistance to change and its function List tactics for dealing with resistance to change. 22 -1.

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Chapter 22 Managing Change

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  1. Chapter 22 Managing Change

  2. Objectives • Describe the nature of change • Explain the essential components in the change process • Understand the leader’s role in the change process • Define resistance to change and its function • List tactics for dealing with resistance to change 22 -1 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  3. Basic Requirements for Successful Change Efforts • Top management support • Critical mass • Trust • New psychological contracts • New learned behaviors • Organizational learning • Institutionalization of innovations 22 -2 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  4. Types of Change Incremental (first-order) • Linear • Continuous • Targeted at fixing / modifying problems / procedures Transformative (second-order, gamma) • Radical • Discontinuous • Multidimensional • Multilevel • Modifies the fundamental structure, systems, orientation and strategies 22 -3 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  5. Critical Mass - Defined Critical mass is defined as the smallest number of people and / or groups who must be committed to a change for it to occur 22 -4 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  6. Lewin’s Change Process Unfreezing Stress, tension, strong felt need for change Moving Give up old ways of behaving, Test new behaviors, attitudes and values Refreezing Reinforce, internalize, institutionalize new behavior 22 -5 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  7. Change Is a Process -not an Event or Managerial Edict Technical Solution Process 22 -6 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  8. Steps in the Change Process Determining the need for change Forming a guiding coalition Evaluating the change Developing a shared vision Implementing the change Creating a tentative plan Communicating the change Establishing an implementation plan Analyzing potential resistance and obtaining participation 22 -7 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  9. When Are Conditions Favorable for Change? C=(D X S X P) > X Where: C = change D = dissatisfaction with status quo S = an identifiable and desired end state P = practical plan for achieving the desired end state X = the cost of change to the organization 22 -8 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  10. Forces for change Forces against change Force Field Analysis - Defined Force field analysis assigns pressures for change and resistance to change to opposite sides of an equilibrium state. 22 -9 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  11. Creative Tension - Defined Creative tension results from perceiving the gap between the ideal situation and an honest appraisal of its current reality Ideal situation Current reality 22 -10 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  12. Creating a Sense of Urgency • Create a crisis by allowing a loss/error to blow up • Eliminate obvious examples of excess • Set targets so high they can’t be reached by doing business as usual • Share more info on customer satisfaction and financial performance • Insist employees talk with unsatisfied customers, suppliers, shareholders • Stop “happy talk” and be honest 22 -11 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  13. Change Agents - Defined Change agents are people who act as catalysts and assume the responsibility for managing change activities 22 -12 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  14. Role of Transformational Leaders Envision • Articulate a clear and credible vision • Set new and difficult standards for performance • Generate pride in past accomplishments and enthusiasm for new strategy 22 -13 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  15. …Role of Transformational Leaders Energize • Personally demonstrate excitement for changes • Model the behaviors that are expected of others • Communicate examples of early successes to mobilize energy for change 22 -14 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  16. …Role of Transformational Leaders Enable • Provide resources necessary for undertaking significant change • Use rewards to reinforce new behaviors • Build an effective top-management team to manage the new organization • Develop management practices to support the change process 22 -15 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  17. Resistance to Change - Defined Resistance is a natural reaction to change and part of the process of adaptation • Ensures that plans for change and their ultimate consequences are carefully thought through 22 -16 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  18. Handling Resistance to Change View it as something else that must be managed by: • Understanding the source • Listening carefully to concern • Refraining from seeing resisters as adversaries • Using the appropriate tactic in response 22 -17 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  19. Sources of Resistance • Inadequate change goal • Inadequate process • Personal resistance • Political resistance • Systemic resistance 22 -18 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  20. Tactics for Dealing with Resistance • Empathy • Education and communication • Participation and involvement • Facilitation and support • Co-optation • Negotiation and agreement • Manipulation • Coercion Commitment Compliance 22 -19 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  21. Organizational Development (OD) - Defined Organization development (OD) is a specialized system-wide process of data collection, diagnosis, action, planning, intervention, and evaluation aimed at: • enhancing congruence between organizational structure, process, strategy, people, and culture,  • developing new and creative organizational solutions, and (3) developing the organization’s self-renewing capacity. 22 -20 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  22. Cultural Values Underlying OD • Respect for people • Trust and support • Equality and power sharing • Candor and confrontation • Participation • Collaboration 22 -21 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  23. When Does Culture Matter with Change? • OD values are not reflective of all cultures. • Cultures vary in terms of their comfort with change, beliefs about how change occurs, and how it should be implemented. • Cultural values affect the change implementation process • Change interventions that work in one country may not succeed elsewhere. Corporate-wide changes have to be contextualized 22 -22 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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