Change Management. OBJECTIVES Understand the range of reactions to organizational change Understand...

Change Management

OBJECTIVES

Understand the range of reactions to organizational change

Understand the causes of reactions to change

Examine our own attitudes towards change

Identify techniques to develop support for organizational change

Examine a systematic plan to manage change

Objectives

What is organizational change? What change strategies are used in

organizations?What can be done about resistance to change?How do organizations innovate?How does stress affect people at work?

What is organizational change?

Forms of change.Radical change.

Also known as frame-breaking change.Change that results in a major overhaul of the

organization or its component systems. Incremental change.

Also known as frame-bending change.Change that is part of the organization’s natural

evolution.


Change agents. Individuals and groups who take responsibility

for changing the existing behavior patterns of another person or social system.

Sometimes hired as outside consultants.Managers and leaders in contemporary

organizations are expected to be change agents.


Unplanned change.

Occurs spontaneously or randomly.

May be disruptive or beneficial.

The appropriate goal is to act quickly to

minimize any negative consequences and

maximize any possible benefits.


Planned change.The result of specific efforts by a change

agent.A performance gap is a direct response to a

perceived performance gap.A discrepancy between the actual and

desired state of affairs.May reflect problems or opportunities.


Organizational forces for change.

Organization-environment relationships.

Organizational life cycle.

Political nature of organizations.


Organizational targets for change.Purpose of the firm.Objectives of the firm.Strategy of the firm.CulturePeople.Tasks.StructureTechnology.


Phases of planned change.Unfreezing.

Preparing a situation for change by disconfirming existing attitudes and behaviors.

Susceptibility to “boiled frog phenomenon.”Changing.

Taking action to modify a situation by altering the targets of change.

Refreezing.Maintaining and eventually institutionalizing the change.

Boiling Frog Phenomenon

If you drop a frog in a pot of boiling water, it will frantically try to clamber out.

But, if you place it gently in a pot of tepid water and turn the heat on low, it will float there quite placidly.

As the water gradually heats up, the frog will sink into a tranquil stupor, exactly like one of us in a hot bath, and before long, with a smile on its face, it will unresistingly allow itself to be boiled to death.

Pace

Old --Slow versus New --rapid This causes employees to become

unsettled.

Scope

Old -- Incremental versus New -- Quantum Big changes create uncertainty among

employees.

Goal

Old -- Short-term results, initiation of change.

New -- Short and long-term results, initiation, management, and maintenance of change.

Mentality

Old - Risks and errors are to be avoided, mistakes are to be punished, change is considered difficult.

New – one is to show carriage, there is more risk in not changing, mistakes are to be taken in stride and as learning opportunities.

Style

Old – gentle New -- upsetting

Source of change

Old – from the top down, and through the support of sponsors.

New – from the middle and lower levels as well as from above, and through empowerment of others.

Degree of planning

Old– High: ready, ready, ready, aim, aim, aim, ….fire!

New – Modest: Ready, fire, aim.

Volume

Old – one – shot. New – Continuous.

Organizational attitudes

Old – “If it ain’t broke, don’t fix it!” New – “If it ain’t broke, break it!”

FORCES TO CHANGE

CHANGE

OrganizationalSocial

Technological

Employee Needs & Values

Business & Economic

RATE OF TECHNOLOGICALCHANGEC

han

ge

Rat

e

2,500,000 B.C. 1,000,000 B.C. 2,000 A.D.

RANGE OF REACTIONS

Leaving

Active resistance

Opposition

Acquiescence

Acceptance/Modification

Acceptance

Active Support

CAUSES OF REACTIONS

REACTIONS

Gain/loss

Understanding

TrustAgreement

Personal Characteristics

CHANGE ATTITUDE COMPONENTS

COGNITIVE

The higher the score, the more a person believes that change tends to produce positive effects for the individual, coworkers, and the organization

AFFECTIVE

The higher the score, the more a person looks forward to change and enjoys it

BEHAVIORAL

The higher the score, the more a person tends to initiate and/or support change

Cognitive Affective Behavioral

Attitudes toward Change

3.2

3.6 3.6

3

3.5

4

SELF-ASSESSMENT NATIONAL NORMS

Types of change strategies

Collaborative -- Participative

Evolution Use when the

organization is in good condition but needs minor adjustment, or is not in good condition but Key interest group’s favorite change.

Collaborative -- Charismatic

Transformation Use when the

organization is not in good condition and though there is little time for extensive participation there is support for radical change

Types of change strategies

Coercive -- Forced Evolution Use one the

organization is in good condition but needs minor adjustment or when it is not in good condition and key interest groups oppose change

Coercive -- Dictatorial

Transformation Use when the organization

is not in good condition there is no time for extensive participation and no support within the organization for radical change but radical change it is vital to organizational survival.

Change Models

Emphasize hard Economic and Performance management

Emphasize behavioral management Imperatives accountability

Focused on one dimension of the firm at a time such as technical competence

Faulty design

Poor results Slow growth

Redesign

Based on core values and vision Building alignment around shared

vision Mobilizing people’s energy Designing an organizational

governance structure that allows for optimum utilization of people’s energy

Redesign

Shared responsibility among all groups and group members

Functional groups, members of the executive team, line leaders, labor unions, staff and so forth.

Not top down

PERSONALITY & ORGANIZATIONAL CHANGE

Tolerance for Ambiguity The higher the score, the better able a person

is to be comfortable with uncertainty

Dogmatism The higher the score, the more rigid a person's

belief system (for example, they like to know the rules and follow them and apply old solutions to new problems)

Authoritarianism The higher the score, the stronger a person's

belief that power and status should be clearly defined and respected, and that there should be a formal organizational hierarchy of authority Cont.

PERSONALITY & ORGANIZATIONAL CHANGE

(continued)

Internal Locus of Control

The higher the score, the more a person believes that his or her abilities and efforts influence successes and failures

External Locus of Control

The higher the score, the more a person believes that other people, circumstances, or luck influence his or her successes and failures

CAUSES OF REACTIONS

REACTIONS

Gain/loss

Understanding

TrustAgreement

Personal Characteristics

TECHNIQUES FOR DEVELOPING SUPPORT & REDUCING RESISTANCE Education and communication Participation and involvement Facilitative support Emotional support Incentives Manipulation and co-optation Coercion

What can be done aboutresistance to change?

Resistance to change.Any attitude or behavior that indicates

unwillingness to make or support a desired change.

Alternative views of resistance.Something that must be overcome for change to

be successful.Feedback that can be used to facilitate achieving

change objectives.


Why people resist change.Fear of the unknown.Lack of good information.Fear for loss of security.No reason to change.Fear for loss of power.Lack of resources.Bad timing.Habit.

EXAMPLES

When knowledge would help alleviate fears due to inaccurate or sketchy information

Education & Communication

Participation & Involvement

When change initiators need information from others to design change and when the probability of resistance is high

Facilitative Support

When people lack the necessary skills or tools to be effective following change

Cont.

EXAMPLES (continued)

Emotional Support

When people have personal concerns and anxiety about a change that supportive reassurance could help alleviate

Incentives When key people will resist the change unless they benefit from it

Manipulation When change is absolutely necessary and all other techniques would be ineffective or too costly

Coercion

When change must occur quickly and the initiators have significantly more power than the resistors


Ways in which resistance is experienced.

Resistance to the change itself.

Resistance to the change strategy.

Resistance to the change agent.


How to deal with resistance.Education and communication.Participation and involvement.Facilitation and support.Negotiation and agreement.Manipulation and cooptation.Explicit and implicit coercion.


Education and communication.Educates people about change prior to

implementation and helps them understand the logic of change.

Use when people lack information or have inaccurate information.

Advantage — creates willingness to help with the change.

Disadvantage — can be very time consuming.


Participation and involvement.Allows people to help design and implement

the changes.Use when other people have important

information and/or power to resist.Advantages — adds information to change

planning; builds commitment to change.Disadvantage — can be very time consuming.


Facilitation and support.Provides emotional and material assistance for

people experiencing the hardships of change.Use when resistance traces to resource or

adjustment problems.Advantage — directly satisfies specific resource

or adjustment needs.Disadvantages — can be time consuming; can

be expensive.


Negotiation and agreement.Offers incentives to actual or potential

change resistors.Use when a person or group will lose

something because of the change.Advantage — helps avoid major resistance.Disadvantages — can be expensive; can

cause others to seek similar deals.


Manipulation Use covert attempts to influence others by selectively

providing information and consciously structuring events.

Use when other methods don’t work or are too expensive.

Advantages — can be quick and inexpensive.Disadvantage — can create future problems if

people sense manipulation.


Explicit and implicit coercion.Employ the force of authority to implement

change.Use when speed is important and the

change agent has power.Advantages — quick; overpowers

resistance.Disadvantage — risky if people get mad.

CHANGE MODELFEEDBACK

STAGE 1 CHANGE IDENTIFICATION

Recognize Need for Change

Identify Nature of Change

STAGE 4 EVALUATE CHANGE

Data Collection Data Evaluation

STAGE 2 IMPLEMENTATION PLANNING

Situational Diagnosis

General Strategy Selection

Support Techniques Selection

STAGE 3 IMPLEMENT CHANGE

Unfreezing Changing Refreezing

Stage 1 Identify Change

SYSTEMATIC CHANGE MANAGEMENT

Stage 2 Plan Change

Stage 3 Implement Change

Stage 4 Evaluate Change

FEEDBACK

What change strategies areused in organizations?

Force-coercion strategy.

Draws on reward power, coercive power, and

legitimate power as primary inducements to change.

Change agent acts unilaterally to command change.

Usually results in temporary compliance.


Rational persuasion strategy.

Also known as an empirical-rational strategy.Draws on expert power as primary inducement to

change.Change agent uses special knowledge, empirical

support, or rational arguments. Usually results in long-term internalization.


Shared power strategy.Also known as a normative-reeducative

approach.Draws on referent power as primary inducement

to change.Change agent empowers people affected by the

change and involves them in decision making related to the change.

Usually results in long-term internalization.

10 Change strategies

Analyze the organizational need for change Create a shared vision Separate from the past Create a sense of urgency Develop a strong leadership role Lineup political sponsorship Develop an implementation plan Develop enabling structures Communicate, involve people, and be honest Monitor, refine, and institutionalize change

Effects of change

Change in organizational power structure.

Change in how work gets done. Change in work related structures. Change in work performance.

Effects of change

Stress is the number one affect on work performance during periods of change.

Stress is created because workers have to change their routines.

Stress is created because workers have to learn new procedures.

Stress is created because workers have to take direct responsibility for their production.

How does stress affect people at work?

Stress.

A state of tension experienced by

individuals facing extraordinary

demands, constraints, or opportunities.


Source of stress.

Stressors.

The wide variety of things that cause stress for

individuals.

Types of stressors.

Work-related stressors.

Nonwork and personal stressors.


Work-related stressors.Task demands.Role ambiguities.Role conflicts.Ethical dilemmas.Interpersonal problems.Career developments.Physical setting.


Nonwork and personal stressors.

Family events.Economic difficulties.Personal affairs.Individual’s needs.Individual’s capabilities.Individual’s personality.


Stress and performance.Constructive stress.

Also known as eustress.Moderate levels of stress act in a positive way for

both individuals and organization.Destructive stress.

Also known as distress.Low and especially high levels of stress act in a

negative way for both individuals and organization.


Stress can harm people’s physical and psychological health.Health problem associated with stress.

Heart attack.Stroke.Hypertension.Migraine headache.Ulcers.Substance abuse.Overeating.Depression.Muscle aches.


Key symptoms of excessive stress.

Changes from:Regular attendance to absenteeism.Punctuality to tardiness.Diligent work to careless work.A positive attitude to a negative attitude.Openness to change to resistance to change.Cooperation to hostility.


Wellness.

Personal wellness involves the pursuit of one’s

physical and mental potential through a personal

health promotion program.

Recognizes individual responsibility for maintaining

and enhancing one’s physical and mental health.


Stress prevention.

The best first-line strategy in battling stress. Involves taking action to keep stress from

reaching a destructive level.Need to monitor personal and nonwork stressors

and to be proactive in preventing their adverse impact.


Stress management.

Used once stress has reached a

destructive point.

Begins with the recognition of stress

symptoms and continues with actions to

maintain a positive performance edge.


Stress management.

Organizations can implement

stress management programs

through their internal health

professionals.


Stress management.

Once workers recognize they are being

affected by stress, they can seek outside

professional help.

Workers can also seek counsel from

coworkers or managers.

Organizational commitment

Organizations committed to change must develop programs that address

Change strategies Modes of management Behavior modification Stress reduction

Change Management. OBJECTIVES Understand the range of reactions to organizational change Understand...

Documents

Transcript of Change Management. OBJECTIVES Understand the range of reactions to organizational change Understand...