Managing ChangeManaging Change

Chapter Sixteen

Models of Planned ChangeModels of Planned Change

•Lewin’s Change Model

•A Systems Model of Change

•Kotter’s Eight Steps for Leading Organizational Change

•Organizational Development

•Understanding and Managing Resistance to Understanding and Managing Resistance to ChangeChange

•Why People Resist Change in the Workplace

•Alternative Strategies for Overcoming Resistance to Change

Chapter Sixteen OutlineChapter Sixteen Outline

• Demographic CharacteristicsDemographic Characteristics- the workforce is more diverse- there is a business imperative to effectively manage diversity

• Technological AdvancementsTechnological Advancements- organizations are increasingly using technology as a means to improve productivity and market competitiveness

• Market ChangesMarket Changes- the emergence of a global economy is forcing companies to be more competitive and to do business differently- organizations are forging new partnerships and alliances aimed at creating new products and services

• Social and Political PressuresSocial and Political Pressures- society and its legislative bodies can put pressure on organizations to change the way they do business – the tobacco industry is a good example

External ForcesExternal Forces: originate outside the organization.

Forces of ChangeForces of Change

• Human Resource Problems/ProspectsHuman Resource Problems/Prospects- employees’ needs, job satisfaction, organizational commitment, behavior, and performance are forces of change- dissatisfied employees and high levels of absenteeism and turnover are signs that change is needed

• Managerial Behavior/DecisionsManagerial Behavior/Decisions- the level of conflict between managers and their direct reports is a force for change- inappropriate leader behavior may result in employee problems requiring change- inequitable reward systems are an additional force for change

Internal ForcesInternal Forces: originate inside the organization.

Forces of Change (continued)Forces of Change (continued)

Forces of Change Forces of Change (exercise)(exercise)

Intel (Opening story)Intel (Opening story):

What are the key reasons for pursuing change?

What changes are being pursued?

Sources of resistance?

Forces of Change Forces of Change (continued)(continued)

Internal ForcesInternal Forces: originate inside the organization.

Organizational objectives not being met is a reason for change –

question of timing

degree of change necessary

•UnfreezingUnfreezing- Creates the motivation to change- Encourages the replacement of old behaviors and attitudes with those desired by management- Entails devising ways to reduce barriers to change- Creates psychological safety

• • ChangingChanging- Provides new information, new behavioral models, or new ways of looking at things- Helps employees learn new concepts or points of view- Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change

•RefreezingRefreezing- Helps employees integrate the changed behavior or attitude into their normal way of doing things- Positive reinforcement is used to reinforce the desired change- Coaching and modeling help reinforce the stability of change

Lewin’s Change ModelLewin’s Change Model

StepStep DescriptionDescription Establish a senseEstablish a sense Unfreeze the organization by creating a

of urgencyof urgency compelling reason for why change is needed. Create the guidingCreate the guiding Create a cross-functional, cross-level group of

coalitioncoalition people with enough power to lead the change. Develop a visionDevelop a vision Create a vision and strategic plan to guide the

and strategyand strategy change process. Communicate theCommunicate the Create and implement a communication

strategychange visionchange vision that consistently communicates the new vision

and strategic plan. Empower broad-Empower broad- Eliminate barriers to change, and use target

based actionbased action elements of change to transform theorganization. Encourage risk taking andcreative problem-solving.

Kotter’s Steps for Leading Kotter’s Steps for Leading Organizational ChangeOrganizational Change

StepStep DescriptionDescription Generate short-Generate short- Plan for and create short-term “wins” or

term winsterm wins improvements. Recognize and reward peoplewho contribute to the wins.

Consolidate gainsConsolidate gains The guiding coalition uses credibility fromand produce moreand produce more short-term wins to create more change.changechange Additional people are brought into the change

process as change cascades throughout theorganization. Attempts are made to reinvigorate the change process.

Anchor newAnchor new Reinforce the changes by highlightingapproaches in theapproaches in the connections between new behaviors and cultureculture processes and organizational success. Develop

methods to ensure leadership development andsuccesses.

Kotter’s Steps for Leading Kotter’s Steps for Leading Organizational Change (continued)Organizational Change (continued)

The leading reasons why people resist change The leading reasons why people resist change are:are:

• An individual’s predisposition toward change• Surprise and fear of the unknown• Climate of mistrust• Fear of failure• Loss of status and/or job security

Resistance to ChangeResistance to Change:: an emotional/behavioral response to real or imagined work change.

Resistance To ChangeResistance To Change

Leading Reasons Why People Resist Change Leading Reasons Why People Resist Change (cont):(cont):•Peer pressure•Disruption of cultural traditions and/or group relationships•Personality conflicts•Lack of tact and/or poor timing•Nonreinforcing reward systems

For Class DiscussionFor Class Discussion:: What do you think are the top three reasons people resist change?

Resistance to Change (cont)Resistance to Change (cont)

• Why is readiness for change an important consideration?

• What survey questions resulted in the lowest readiness for change? Why did this occur?

• What can managers do to prepare an organization for change?

Assessing an Organization’s Assessing an Organization’s Readiness for ChangeReadiness for Change

DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

Can be very time consuming if participators design an inappropriate change

People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan

Where the initiators do not have all the information they need to design the change and where others have considerable power to resist

Participation + Participation + Involvement Involvement

Can be very time consuming if lots of people are involved

Once persuaded, people will often help with the implementation of the change

Where there is a lack of information or inaccurate information and analysis

Education + Education + CommunicationCommunication

ApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance Resistance to Changeto Change

DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

Can be too expensive in many cases if alerts others to negotiate for compliance

Sometimes it is a relatively easy way to avoid major resistance

Where someone or some group will clearly lose out in a change and where that group has considerable power to resist

Negotiation + Agreement Negotiation + Agreement

Can be time consuming, expensive, and still fail

No other approach works as well with adjustment problems

Where people are resisting because of adjustment problems

Facilitation + SupportFacilitation + SupportApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance Resistance

to Change (continued)to Change (continued)

DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

Can be risky if it leaves people mad at the initiators

It is speedy and can overcome any kind of resistance

Where speed is essential and where the change initiators possess considerable power

Explicit + Implicit Explicit + Implicit Coercion Coercion

Can lead to future problems if people feel manipulated

It can be a relatively quick and inexpensive solution to resistance problems

Where other tactics will not work or are too expensive

Manipulation + Co-Manipulation + Co-optationoptation

ApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance Resistance

to Change (continued)to Change (continued)