18–1 C H A P T E R 18 Managing Organizational Change and Development Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational

18–18–11

C H A P T E R 18

Managing Organizational Change and DevelopmentJon L. Pierce &

Donald G. Gardnerwith Randall B. Dunham

Management

OrganizationalBehavior

PowerPoint Presentationby Charlie Cook

An Integrated Perspective

Copyright © 2002 by South-Western

Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 18–18–22

Learning ObjectivesLearning Objectives

1.1. Identify the five primary reasons change does and should Identify the five primary reasons change does and should occur in organizations.occur in organizations.

2.2. Understand the difference between proactive and reactive Understand the difference between proactive and reactive change.change.

3.3. Describe the major types of change that occur in Describe the major types of change that occur in organizations.organizations.

4.4. Describe the range of people’s reactions to organizational Describe the range of people’s reactions to organizational change and the reasons underlying their reactions.change and the reasons underlying their reactions.

5.5. Understand the role that psychological ownership plays Understand the role that psychological ownership plays in both the promotion of, and resistance to, organizational in both the promotion of, and resistance to, organizational change.change.


Learning ObjectivesLearning Objectives

6.6. Identify and describe the relative strengths and Identify and describe the relative strengths and

weaknesses of the seven major techniques for developing weaknesses of the seven major techniques for developing

support for organizational change.support for organizational change.

7.7. Understand the special role of organizational Understand the special role of organizational

development and how it can enhance effectiveness and development and how it can enhance effectiveness and

benefit organizational members.benefit organizational members.

8.8. Describe a systematic approach to planning and Describe a systematic approach to planning and

managing organizational change.managing organizational change.

9.9. Describe a learning organization and how it differs from a Describe a learning organization and how it differs from a

traditional organization.traditional organization.


Why Change Occurs: Forces for Why Change Occurs: Forces for ChangeChange

OrganizationalOrganizationalChangeChange

Technological Technological

forcesforces

Employee needs Employee needs

and valuesand values

Social ForcesSocial ForcesBusiness and Business and

Economic ForcesEconomic Forces

Organizational Organizational

ForcesForces


Types of ChangeTypes of Change

• Reactive changeReactive change Change that occurs when the forces Change that occurs when the forces

driving change provide so much driving change provide so much pressure that the organization pressure that the organization must change.must change.

• Proactive changeProactive change Organizational change that occurs when managers Organizational change that occurs when managers

conclude that change is desirableconclude that change is desirable(as opposed to necessary).(as opposed to necessary).


Types of ChangeTypes of Change

• Change and innovationChange and innovation Change is the modification of an existing organizational Change is the modification of an existing organizational

practice.practice. Innovation occurs when the organization is the first or Innovation occurs when the organization is the first or

an early user of an idea.an early user of an idea.

• Technological changesTechnological changes The introduction of new technologies The introduction of new technologies

into the workplace.into the workplace.


FirstTool

Fire

ElectronicRevolution

Wheel

IndustrialRevolution

A.D. 20002,000,000 B.C. 1,000,000 B.C.

UncontrollableChange

No Change

Ra

te o

f T

ec

hn

olo

gic

al

Ch

an

ge

The Rate of Change is AcceleratingThe Rate of Change is Accelerating

FIGURE 18FIGURE 18–1–1


Types of Change (cont’d)Types of Change (cont’d)

• Structural/procedural changesStructural/procedural changes Changes in organizational design and the methods to Changes in organizational design and the methods to

coordinate workcoordinate work

• People-oriented changesPeople-oriented changes Improving employee skills, attitudes, motivation, and Improving employee skills, attitudes, motivation, and

behaviorsbehaviors

• Technostructural changesTechnostructural changes Concurrent changes in organization technology and Concurrent changes in organization technology and

organizational structureorganizational structure

• Sociotechnical changesSociotechnical changes Changes in people and technologyChanges in people and technology


Reactions to ChangeReactions to Change

• Organizational inertiaOrganizational inertia The tendency of organizations to maintain the status The tendency of organizations to maintain the status

quo.quo.

• How change gets thwarted:How change gets thwarted: By control-oriented mechanistic management at the By control-oriented mechanistic management at the

organizational level.organizational level. By organizational groups that will resist change By organizational groups that will resist change

because change threatens group’s norms.because change threatens group’s norms. By individuals with strong habits or fears that cause By individuals with strong habits or fears that cause

them to view change in less than positive ways.them to view change in less than positive ways.


The Reasons Behind Our Reactions The Reasons Behind Our Reactions to Changeto Change

• Resistance to change is caused by:Resistance to change is caused by: Misperceptions of valueMisperceptions of value Misunderstanding the changeMisunderstanding the change Lack of trust in the initiatorsLack of trust in the initiators Lack of agreement with the changeLack of agreement with the change Personal feelingsPersonal feelings


Psychological Ownership and Psychological Ownership and ChangeChange• Psychological theory of change (Dirks, et al)Psychological theory of change (Dirks, et al)

The strength of an individual’s psychological ownership The strength of an individual’s psychological ownership for the target of change appears to influence their for the target of change appears to influence their disposition to change.disposition to change.

Change is categorized as:Change is categorized as: Self-initiated change versus imposed changeSelf-initiated change versus imposed change Evolutionary change versus Evolutionary change versus

revolutionary changerevolutionary change Additive versus subtractive Additive versus subtractive

changechange


Developing Support for ChangeDeveloping Support for Change

• Educate and communicateEducate and communicate• Participate and involveParticipate and involve• Task support (facilitate)Task support (facilitate)• Provide emotional supportProvide emotional support• Provide incentivesProvide incentives• Manipulate and co-optManipulate and co-opt• Coerce Coerce


The Special Role of Organizational The Special Role of Organizational DevelopmentDevelopment

• Organizational development (OD)Organizational development (OD) A process for diagnosing organizational problems by A process for diagnosing organizational problems by

looking for incongruencies in environment, structures, looking for incongruencies in environment, structures, processes, and people.processes, and people.

Interventions—actions that improve organizational Interventions—actions that improve organizational effectiveness and/or the well-being of its members.effectiveness and/or the well-being of its members.

• Who practices OD?Who practices OD? Change agents—individuals who are trained to facilitate Change agents—individuals who are trained to facilitate

organizational change.organizational change.


Common OD ActivitiesCommon OD Activities

Technique Examples

Organizational diagnoses Interviews, surveys, group meetings

Team building Improvement of existing groups; creation of teams for problem solving

Survey feedback Provision of survey results to members, interpretation of results by members.

Education Classroom training for “sensitivity” skills

Intergroup activities Communication development; conflict reduction

Third-party peace making Negotiation, mediation by “outsider” for interperson and Intergroup conflict

Technostructural/sociotechnical Joint examination of technology, structure, and people systems

TABLE 18TABLE 18–4a–4a


Common OD Activities (cont’d)Common OD Activities (cont’d)

Technique Examples

Process consultation Observation of groups in action with immediate feedback on processes observed

Life/career planning Future-oriented—development of personal goals and acquisition of skills to help individuals fit into the organization and the organization match individual needs

Coaching Nonevaluative feedback for individuals describing how others see them

Planning and goal setting Training of individuals to improve personnel-planning and goal-setting effectiveness; emphasis on individual’s place in the organization.

TABLE 18TABLE 18–4b–4b


Planning andPlanning andManaging theManaging theChange ProcessChange Process

Stage 1Change Identification

RecognizeNeed forChange

IdentifyNature ofChange

Stage 2 Implementation Planning

Selection ofGeneralStrategy

Selection ofSupport

Techniques

SituationalDiagnosis

Stage 3 Implementation

Changing RefreezingUnfreezing

Stage 4Evaluation and Feedback

DataCollection

DataEvaluation

Fee

db

ack

FIGURE 18FIGURE 18–2–2

Documents

18–1 C H A P T E R 18 Managing Organizational Change and Development Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational