CH16 - Organizational Change

nullnullEssentials of Organizational Behavior, 10/e Stephen P. Robbins & Timothy A. JudgeChapter 16 Organizational ChangeAfter studying this chapter, you should be able to:After studying this chapter, you should be able to:Identify forces that act as stimulants to change. List the sources for resistance to change. Compare the three main approaches to managing organizational change. Describe the causes and consequences of work stress. Describe characteristics of a learning organization. Explain global differences in organizational change and stress.Forces that Stimulate ChangeForces that Stimulate ChangeSources of Resistance to ChangeSources of Resistance to ChangeIndividualHabit Security Economic Factors Fear of the Unknown Selective Information ProcessingOrganizationalStructural Inertia Limited Focus of Change Group Inertia Threat to Expertise Threat to Established Power Relationships and Resource AllocationsPeople tend to resist change, even in the face of evidence of its benefits. Change AgentsChange AgentsPersons in organization responsible for managing change activities Can be managers or non-managers, current employees, newly hired employees or outside consultants Outside consultants can provide objective perspectives, but don’t have to live with the consequences of changeOvercoming Resistance to ChangeOvercoming Resistance to ChangeEducation and Communication Participation Building Support and Commitment Implementing Changes Fairly Cooptation Selecting People who Accept Change CoercionApproaches to Managing Organizational ChangeApproaches to Managing Organizational ChangeLewin’s Three-Step Model of Change Kotter’s Eight-Step Model of the Change Process Organizational DevelopmentLewin’s Three-Step ModelLewin’s Three-Step ModelUnfreezing can be achieved by: Increase driving forces that direct behavior away from the status quo Decrease restraining forces that hinder movement from the existing equilibrium Combine the two above approaches Kotter’s Eight-Step PlanKotter’s Eight-Step PlanCreate urgency Form coalition Create new vision Communicate the visionEmpower others Reward “wins” Consolidate improvements Reinforce the changeUnfreezingMovementRefreezingOrganizational DevelopmentOrganizational DevelopmentA collection of planned-change interventions that seek to improve organizational effectiveness and employee well-being Based on humanistic-democratic values: Respect for People Trust and Support Power Equalization Confrontation ParticipationOD InterventionsOD InterventionsSensitivity Training Changing behavior through unstructured group interaction Survey Feedback Gathering data and acting on it Process Consultation Using outside consultants Appreciative Inquiry Discovering what the organization does right Creating a Culture for ChangeCreating a Culture for ChangeInnovation: a new idea applied to initiating or improving a product, process, or service Sources: Structural – verbose organic structures with slack resources and long-term managers Cultural – encourage experimentation, reward success and failure, and celebrate mistakes Human Resources – actively promote training and development, have high job security, use idea championsIdea ChampionsIdea ChampionsManagers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is implemented Have high self-confidence, persistence, energy, and acceptance of risk Use inspiration and vision to gain commitment Have decision-making discretionContemporary IssuesContemporary IssuesTechnology in the Workplace Work Stress Creating Learning OrganizationsTechnology in the WorkplaceTechnology in the WorkplaceContinuous Improvement Process Goal is constant reduction in variability Uniformity results in lower costs, higher quality, and increased stress Process Reengineering How you would do things if you could start over from scratch Very stressful for everyoneWork StressWork StressDynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what is desired and for which the outcome is perceived to be both uncertain and important Types: Challenge Stress – may improve performance Hindrance Stress – comes from obstacles to achieving goals – mostly negativeManaging StressManaging StressOrganizationalEmployee Selection Organizational Communication Goal-setting Programs Job RedesignPersonalCounseling Time Management Physical ActivityManagers have no direct control on personal stress and there are ethical considerations about intruding into employees’ personal livesCreating a Learning OrganizationCreating a Learning OrganizationAn idealized organization that has developed the continuous capacity to adapt and change Types of Learning: Single-Loop: error correction process relies on past routines and present policies Double-Loop: errors are corrected in ways that involve the modification of the organization’s objectives, policies and standard routines – used by learning organizationsFive Basic Characteristics of a Learning OrganizationFive Basic Characteristics of a Learning OrganizationPeople in a learning organization: Are willing to put aside their old ways of thinking Learn to be open with each other Understand how the organization really works Can form a plan or vision that everyone agrees on Can work together to achieve that visionLearning OrganizationsLearning OrganizationsSolves the three fundamental problems of traditional organizations: Fragmentation – functional silos Competition – overemphasis undermines collaboration Reactiveness – ”firefighting” Managing Learning: Establish a strategy Redesign the organization’s structure Reshape the organization’s cultureGlobal ImplicationsGlobal ImplicationsIs managing change culture bound? Do people believe change is possible? Yes, when people believe they control their environment If it’s possible, how long will it take to bring about? Short-term focus cultures want fast results Is resistance to change greater in some cultures than in others? Yes, traditional cultures resist change Global Implications ContinuedGlobal Implications ContinuedDoes culture influence how change efforts will be implemented? Yes, high power distance cultures are autocratic Do successful idea champions do things differently in different cultures? Yes, idea champions modified techniques based on culture Does stress vary across cultures? The conditions that lead to stress may vary, but the personality effects, outcomes, and reduction methods do notImplications for ManagersImplications for ManagersThe need for change encompasses almost aspects of OB The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels Managers must continually act as change agentsKeep in Mind…Keep in Mind…Organizations and their members tend to resist change It is unlikely that anyone approach to managing change we best in every situation Changes often stressful, but not all stress is harmfulSummarySummaryIdentified forces that act as stimulants to change. Listed the sources for resistance to change. Compared the three main approaches to managing organizational change. Described the causes and consequences of work stress. Described characteristics of a learning organization. Explained global differences in organizational change and stress.nullAll rights reserved. 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