Griffin Fob 1e Chapter 15

Chapter FifteenOrganization Change and Development

Copyright Houghton Mifflin Company. All rights reserved.15-*Chapter ObjectivesSummarize four dominant forces for change in organizations.Describe the process of planned organization change as a continuous process.Discuss several approaches to organization development.Explain organizational and individual sources of resistance to change.Identify six keys to managing successful organizational change and development

Copyright Houghton Mifflin Company. All rights reserved.

Copyright Houghton Mifflin Company. All rights reserved.15-*Forces for ChangeAn organization faces pressures for change from numerous sources:It is difficult to predict what types of pressures for change will be the most significant in the next decade because the complexity of events and the rapidity of change are increasing.Four categories of pressures that are likely to have major effects on organizations include:People, technology, information processing and communications, and competition.


Copyright Houghton Mifflin Company. All rights reserved.15-*Pressures for Organizational ChangePeopleBaby Boomers comprise approximately 56 million people born between 1945 & 1960. Special characteristics of this group include distinct purchasing patterns that affect product and service innovation, technological change, and marketing activities.TechnologyTechnology development is increasing so rapidly in almost every field making it difficult to predict which products will dominate 10 years from now.


Copyright Houghton Mifflin Company. All rights reserved.15-*Pressures for Organizational Change (continued)Information Processing and CommunicationsIn the future, people may not need offices as they work with computers and communicate through new data transmission devices.CompetitionMost markets are international because of decreasing transportation and communication costs. The Internet is creating new opportunities overnight.


Copyright Houghton Mifflin Company. All rights reserved.15-*Planned Organizational ChangeExternal forces may impose change on an organization.Ideally, the organization will not only respond to change but will anticipate it, prepare for it through planning, and incorporate it in the organization strategy.


Copyright Houghton Mifflin Company. All rights reserved.15-*Lewins Process ModelKurt Lewin suggested that efforts to bring about planned change in organizations should approach change as a multistage process.His model of planned change consists of 3 stepsUnfreezingChangeRefreezing


Copyright Houghton Mifflin Company. All rights reserved.15-*The Continuous Change Process ModelLewins model is very simple and straightforward, so virtually all models of organizational change use his approach.However, it does not deal with several important issues.This approach treats planned change from the perspective of top management and indicates that change is continuous.


Copyright Houghton Mifflin Company. All rights reserved.15-*The Continuous Change Process Model (continued)Major Steps in the ModelTop management perceives that change is needed.The issue in question is subjected to the organizations usual problem-solving and decision-making processes.Alternatives for change are generated and evaluated, and an acceptable one is selected.The change agent and top management assess the degree to which the change is having the desired effect, and make adjustments if necessary.


Copyright Houghton Mifflin Company. All rights reserved.15-*Organization DevelopmentThe process of planned change and improvement of an organization through the application of knowledge of the behavioral sciences. First, organization development involves attempts to plan organization changes, which excludes spontaneous, haphazard initiatives.Second, the specific intention of organizational development is to improve the organization.Third, the panned improvement must be based on knowledge of behavior sciences such as organizational behavior, psychology, sociology, and related fields rather than financial or technological considerations.


Copyright Houghton Mifflin Company. All rights reserved.15-*Systemwide Organization DevelopmentStructural ChangeA major reorientation or reorganization that affects performance appraisal and rewards, decision making, and communication and information processing systems.No systemwide structural change is simple.


Copyright Houghton Mifflin Company. All rights reserved.15-*Systemwide Organizational Development (continued)Contemporary Approaches to Systemwide Structural Change involve:ReengineeringChanging the way tasks are divided into jobsCombining jobs into departments and divisionsRearranging authority and reporting relationships Dividing large groups into smaller onesMoving from functional departmentalization to a system based on products or geographyMoving from a vertical or functional design to a matrix or a team-based design


Copyright Houghton Mifflin Company. All rights reserved.15-*Task and Technological Organizational DevelopmentTask RedesignChanging tasks involved in doing the workChanging how inputs are transformed into outputs is called technological change usually results in task changes


Copyright Houghton Mifflin Company. All rights reserved.15-*Four Types of People-Oriented Change TechniquesTrainingGenerally designed to improve employees job skills. Among the many training methods, the most common are lectures, discussions, lecture-discussion combinations, experiential methods, case studies, and films or videotapes.Management Development ProgramsPrograms that attempt to foster certain skills, abilities, and perspectives. Training in this area typically relies heavily on participative methods such as case studies and role playing.


Copyright Houghton Mifflin Company. All rights reserved.15-*Four Types of People-Oriented Change Techniques (continued)Team BuildingEmphasizes members working together in a spirit of cooperationSurvey FeedbackTechniques used to form the basis for a change process; data are gathered, analyzed, summarized, and returned to those who generated them to identify, discuss, and solve problems


Copyright Houghton Mifflin Company. All rights reserved.15-*Resistance to ChangeResistance to change can come from the organization, the individual, or both.Organizations both promote and resist change.As an agent of change, the organization asks prospective customers to change their purchasing habits by buying its products or services, and asks clients and suppliers to change to accommodate other firm objectives.An organization resists change in that its structure and control systems protect the daily tasks of producing a product or service from uncertainties in the environment.


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Griffin Fob 1e Chapter 15