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MM202 Organizational BehaviorMarch 15, 2014
The difference between
sink or swim
A walk in the park
Happening!
The key to success
The unknown
A reflection of the past
Hard work
First Order, Incremental Change
• “May involve adjustments in systems, processes, or structures, but it does not involve fundamental change in strategy, core values, or corporate identity.”
• Small-scale, Local changes
• May be personal initiatives or development of local routines
Second-order, Discontinuous Change
• “is transformational, radical, and fundamentally alters the organization at its core.”
Table 4.2 Rationale for New Organizational ChangesAdapted from Whittington et al., 1999:589.
Table 4.2 Rationale for New Organizational ChangesAdapted from Whittington et al., 1999:589.
Table 4.2 Rationale for New Organizational ChangesAdapted from Whittington et al., 1999:589.
INTERNAL
Structure
Organizational Culture
Quality programs
New business processes
Pressures most likely to have
major effects on organizations
EXTERNAL
Technology
Economic Shocks
Competition
World politics
Nature of the workforce
Social trends
Nature of workforce
Technology
Economic Shocks
Competition
Social Trends
World Politics
Nature of the Workforce
Rise and fall of global housing market
Financial sector collapse
Global recession
Technology
Faster, cheaper, and more mobile computers and handheld devices
Emergence and growth of social networking sites
Deciphering of the human genetic code
Economic Shocks
Increased environmental awareness
Liberalization of attitudes toward gay, lesbian, and transgender employees
More multitasking and connectivity
Competition
Global competitors
Mergers and consolidations
Increased government regulation of commerce
Social Trends
Raising health care costs
Negative social attitudes
toward business and executives
Opening of markets in China
World Politics
Seeks to improve the ability of organization to adapt
to changes in the environment
Seeks to change employee behavior
Proactive and purposeful
Two Views
“Calm Waters” “White Water Rapids”
Proactive and purposeful
Unfreezing
Changing
Refreezing
Force
Problem
Implement
Process
Evaluate
Transition
agent
Lewin’s Three-Step Change Process
Continuous Change Process
Kurt Lewin’s Change Process
OLD STATE
UNFREEZE CHANGE REFREEZE
NEW STATE
Awareness of
need for change
Movement from
old state to new
state
Assurance of
permanent
change
John Kotter’s Steps for Leading Organizational Change
Phase 1
Unfreezing
Change Leader’s task:
Create a need for change
This is done by:
• Establishing a good relationship with those involved
• Helping others to realize the need to change existing behavior as
they are not effective
• Minimizing resistance to change
Phase 2
Changing
Change leader’s task:
Implement change
This is done by:
• Identifying new and more effective behaviors
• Choosing appropriate changes in tasks, people and other factors
significant to the changes we are proposing
• Taking appropriate action to implement changes
Phase 3
Refreezing
Change leader’s task:
Stabilizing change
This is done by:
• Creating acceptance and continuity for the new behaviors
• Providing necessary resource support
• Using positive reinforcement to encourage positive outcome
Continuous Change Process Model
Adapted from Griffin and Moorhead, 2006:398
1. Forces for
Change
2.Recognize
and Define
Problem
4. Implement
the Change
3. Problem-
solving
Process
5. Measure,
Evaluate,
Control
Transition
Management
Change
Agent
Organizations respond
• Anticipate
• Prepare
• Incorporate
Understanding and Managing Resistance to Change
Provides a degree of stability and predictability to behavior
A source of functional conflict
Hinders adaptation and progress
Habit
Security
Economic Factors
Fear of the Unknown
Lack of Awareness
Social Factors
Structural Inertia
Limited Focus of Change
Group Inertia
Threat to Expertise
Threat to Established Power Relationships
Threat to Established Resource Allocations
Individual Resistance Organizational Resistance
A predisposition
Programmed response
Individual Resistance
Selectively processing information
A perceptual limitation
Habit SecurityEconomic
Factors
Fear of the
Unknown
Lack of
AwarenessSocial Factors
The comfort of doing things the same way
Possibly reduce opportunity for income increase
Dislike for uncertainty
Not knowing what is expected of them
Fear of what others will think
Peer pressure
Organizational Resistance
Structural inertia – designed to maintain stability
Limited focus of change– Adopts too narrow a focus
– Interdependencies not taken to account
Group inertia– Group norms act as constraint to individual
change
Threatened expertise– Possible transfer or elimination of
specialized task
Threatened power– Redistribution of decision-making
authority
Resource allocations – Threat to future allocations
ApproachCommonly Used
in SituationsAdvantages Drawbacks
Education and
Communication
- Where there is
lack of
information
- inaccurate
information
and analysis
Once persuaded,
people will often
help with the
implementation of
the change
Can be very time
consuming if lots
of people are
involved
Participation
and involvement
- Where
initiators do not
have all
information to
design the
change
- Others have
considerable
power to resist
People who
participate will be
committed to
implementing
change; relevant
information they
have will be
integrated into the
change plan
Can be very time
consuming if
change design is
inappropriate
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. New York. p. 241.
ApproachCommonly Used
in SituationsAdvantages Drawbacks
Facilitation and
Support
- Where people
are resisting
because of
adjustment
problems
No approach
works as well with
adjustment
problems
Can be time
consuming,
expensive, and
still fail
Negotiation and
agreement
- Where
someone or
some group
will clearly lose
out in a change
- Group has
considerable
power to resist
Sometimes it is a
relatively easy
way to avoid
major resistance
Can be too
expensive in
many cases if it
alerts others to
negotiate for
compliance
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. New York. p. 241.
ApproachCommonly Used
in SituationsAdvantages Drawbacks
Manipulation
and co-optation
- Where other
tactics will not
work or are too
expensive
It can be a
relatively quick
and inexpensive
solution to
resistance
problems
Can lead to future
problems if
people feel
manipulated
Explicit and
implicit coercion
- Where speed is
essential
- Where
initiators
possess
considerable
power
It is speedy and
can overcome any
kind of resistance
Can be risky if it
leaves people
angry at the
initiators
Source: Adapted from Ahmad et al. (2009), Understanding Organizational Behaviour. New York. p. 241.
Symptoms:
Increased heart rate, blood pressure…
(physiological)
Job Dissatisfaction (psychological)
Changes in productivity, absence, turnover…
(behavioral)
WORK STRESS
Reduce (dysfunctional) stress:
Employee selection – job matching
Job redesign – increase challenge or reduce workload
Counseling
To be continued…
Managing change
The process of planned change and improvement of the organization through application of knowledge of the behavioral sciences.
Griffin and Moorhead (2006)
Attempts to plan organization changes
Specific intention is to improve the organization
Planned improvement is based on knowledge of
behavioral sciences rather than on financial or
technological considerations
Is built on humanistic-democratic values
Interventions for bringing about change
.
. . .
.STRUCTURAL INTERVENTIONS
TASK-TECHNOLOGY
INTERVENTIONS
PEOPLE-
FOCUSED
INTERVENTIONS
Structural Intervention
Structural Reorganization
New Reward System
Changing Organizational
Culture
• Flatter
• Decentralized
• Organic
Economic benefits
Improved
communication
Give greater
autonomy
• Move to “pay-for-
performance”
programs
• Group-based
bonus plans
• Introducing new
cultural values
Support less
management control
Increase tolerance
for risk and conflict
Open communication
channels
Step 1: Recognition of a need for a
change
Step 2: Selection of task redesign as a
potential intervention
Step 3: Diagnosis of the work system
and context
a. Diagnosis of existing jobs
b. Diagnosis of existing workforce
c. Diagnosis of technology
d. Diagnosis of organization design
e. Diagnosis of leader behavior
f. Diagnosis of group and social
process
Step 4: Cost-benefit analysis of
proposed changes
Step 5: Go/ no-go decision
Step 6: Formulation of the strategy for
redesign
Step 7: Implementation of the task
changes
Step 8: Implementation of any
supplemental changes
Step 9: Evaluation of the task redesign
effortSource: Adapted from Griffin & Moorhead. (2006). p.401
Sensitivity
Training
Process
Consultation
Survey
Feedback
Team Building
Intergroup
Development
People-Focused
InterventionsUnstructured
group interaction
Resolving differences
in perception
Consultant as
change agent
Clarify each member’s
role in the group
Directed toward
improving intergroup
relations
Consider introducing these variables to create an
innovative climate:
STIMULATING
INNOVATION
Structural variables
organic structures, managerial tenure, slack resources, inter-unit communication
Cultural variables
Encourage experimentation – reward both success and failure
Human Resource variables
Active training and development to keep them current
Encourage individuals to become champions of change
What can managers do to help
their organizations become
more innovative?
CREATING A
LEARNING
ORGANIZATION
Establish a strategy
Commitment to change, innovation, and continuous improvement
Redesign the organization’s structure
Reinforce interdependence, reduce boundaries
Reshape the organization’s culture
“We think agreement is so important. Who cares? You have to bring paradoxes, conflicts, and dilemmas out in the open, so collectively we can be more intelligent than we can be individually. “
How can managers create a
continuously changing and
learning organization?
Now in the 21st century, change and how to lead it successfully has become a critical topic on the minds of organizational leaders
The future success of our organizations depends on how successful leaders are at leading change
Leaders themselves must transform to lead transformation successfully in their organizations.
Today’s marketplace demands conscious change leadership – a shift in consciousness regarding how we view change, ourselves, and our roles as change leaders.
FOOD FOR THOUGHT
Ahmad, Z. A., Surienty, L., Effendi, A. A., Jauhar, J., Rohaida, S., & Sharma, T. (2009).
Understanding Organizational Behaviour. New York: Oxford University Press.
Anderson, D., & Anderson, L. A. (2010). Beyond Change Management. San Francisco: Pfeiffer.
Griffin, R. W., & Moorhead, G. (2006). Fundamentals of Organizational Behavior. Boston:
Houghton Mifflin Company.
Robbins, S. P. (2000). Essentials of Organizational Behavior. New Jersey: Prentice Hall.
Web sources:
http://highered.mcgraw-hill.com/sites/dl/free/0073404993/579428/Sample_Chapter.pdf
http://en.wikipedia.org/wiki/Who_Moved_My_Cheese%3F
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