Organizational Change
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Transcript of Organizational Change
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McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
1717
OrganizationalChange
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-2
DesiredConditions
CurrentConditions
BeforeChange
AfterChange
DrivingForces
RestrainingForces
Force Field Analysis Model
DuringChange
DrivingForces
RestrainingForces Driving
Forces
RestrainingForces
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-3
Forces forForces forChangeChange
Resistance to Change
Direct Costs
Saving Face
Fear of the Unknown
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-4
Resisting Change at the FBI
The FBI has been slow to shift from law enforcement to domestic intelligence due to:
Incongruent systems -- career paths, reward system, decentralized structure
Breaking routines -- unfamiliar with intelligence gathering roles
Saving face -- past turf wars with CIA created an anti-investigation mindset
AP/ Wide World Photos
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-5
Creating an Urgency for Change
Inform employees about driving forces
Most difficult when organization is doing well
Must be real, not contrived
Customer-driven change Adverse consequences for firm Human element energizes employees
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-6
Minimizing Resistance at Nissan
Carlos Ghosn launched a turnaround at Nissan Motor Company
that saved the Japanese automaker and relied on change management practices rarely seen in Japan. Employee
involvement was a key strategy to minimize resistance to the turbulent changes that occurred.
Eriko Sugita/Reuters/Corbis
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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-7
CommunicationCommunication Highest priority and first strategy for change
Improves urgency to change
Reduces uncertainty (fear of unknown)
Problems -- time consuming and costly
Minimizing Resistance to Change
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-8
CommunicationCommunication
Provides new knowledge and skills
Includes coaching and action learning
Helps break old routines and adopt new roles
Problems -- potentially time consuming and costly
Minimizing Resistance to Change
LearningLearning
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-9
CommunicationCommunication
Increases ownership of change
Helps saving face and reducing fear of unknown
Includes task forces, future search events
Problems -- time-consuming, potential conflict
Minimizing Resistance to Change
LearningLearning
Employee Employee InvolvementInvolvement
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-10
CommunicationCommunication When communication, training, and involvement do not resolve stress
Potential benefitsMore motivation to changeLess fear of unknownFewer direct costs
Problems -- time-consuming, expensive, doesnt help everyone
Minimizing Resistance to Change
LearningLearning
Employee Employee InvolvementInvolvement
Stress Stress ManagementManagement
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-11
CommunicationCommunication
When people clearly lose something and wont otherwise support change
Influence by exchange--reduces direct costs
Problems Expensive Gains compliance, not
commitment
Minimizing Resistance to Change
LearningLearning
Employee Employee InvolvementInvolvement
Stress Stress ManagementManagement
Negotiation
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-12
CommunicationCommunication
When all else fails
Assertive influence
Firing people -- radical form of unlearning
Problems Reduces trust May create more subtle
resistance
Minimizing Resistance to Change
LearningLearning
Employee Employee InvolvementInvolvement
Stress Stress ManagementManagement
Negotiation
Coercion
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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-13
Refreezing the Desired Conditions
Realigning organizational systems and team dynamics with the desired changes
Alter rewards to reinforce new behaviors
Feedback systems Help employees learn how they are doing Provide support for the new behavior patterns
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-14
Strategic Vision & Change
Need a vision of the desired future state
Identifies critical success factors for change
Minimizes employee fear of the unknown
Clarifies role perceptions
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-15
Change Agents
Change agents apply transformational leadership Help develop a vision Communicate the vision Act consistently with the vision Build commitment to the vision
Also apply transactional leadership Aligning employee behavior through rewards,
resources, feedback ,etc.
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-16
Diffusing Change with MARS Model
Motivation Successful pilot project Supervisor support and reinforcement
Ability Competencies to adopt pilot project
Role modeling from people in pilot project
Role perceptions Translating pilot project practices -- neither too specific
nor too general
Situational factors Resources and time to implement pilot project elsewhere
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-17
Action Research Approach
Change needs both action and research focus
Action orientation Solve problems and change the
organizational system
Research orientation Concepts guide the change Data needed to diagnose problem, identify
intervention, evaluate change
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-18
EstablishEstablishClientClient--
ConsultantConsultantRelationsRelations
DisengageDisengageConsultantsConsultants
ServicesServices
Action Research Process
DiagnoseNeed forChange
IntroduceIntervention
Evaluate/StabilizeChange
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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-19
Appreciative Inquiry at Canadian Tire
Canadian Tire relied on appreciative inquiry by asking staff to describe events that have made the retailer successful. The companys core values were then rebuilt around those positive experiences. Store employees were also involved in an appreciative inquiry exercise to reinforce these values.
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-20
Appreciative Inquiry Approach
Directs participants attention away from problems and towards the groups potential and positive elements.
Reframes relationships around the positive rather than being problem oriented
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-21
Four-D Model of Appreciative Inquiry
DiscoveryDiscovery DesigningDesigning
Engaging in dialogue about what should be
DreamingDreaming
Forming ideas about what might be
Discovering the best of what is
DeliveringDelivering
Developing objectives about what will be
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-22
Parallel Learning Structure Approach
Highly participative social structures
Members representative across the formal hierarchy
Sufficiently free from firms constraints
Develop solutions for organizational change which are then applied back into the larger organization
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-23
OrganizationParallelStructure
Parallel Learning Structures
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-24
Cross-Cultural and Ethical Concerns
Cross-Cultural Concerns Linear and open conflict assumptions different
from values in some cultures
Ethical Concerns Privacy rights of individuals Management power Individuals self-esteem Consultants role
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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-25
Rules for the Road Ahead
Understand your needs and values
Understand your competencies
Set career goals
Maintain networks
Get a mentor
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-26
Organizations are About People
Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.
Andrew Carnegie (1835-1919)
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
1717
OrganizationalChange
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
1717
Discussion of Activity 17.3 Strategic Change Incidents
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-29
Example #1: Greener Telco
Scenario #1 refers to Bell Canadas Zero Waste program, which successfully changed wasteful employee behaviors by altering the causes of those behaviors. Courtesy of Bell Canada
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-30
Bell Canadas Change Strategy
Relied on the MARS model to alter behavior:
Motivation -- employee involvement, respected steering committee
Ability -- taught paper reduction, email, food disposal
Role perc. -- communicated importance of reducing waste
Situation -- Created barriers to wasteful behavior, eg. removed trash cans
Courtesy of Bell Canada
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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-31
Example #2: Go Forward Airline
Scenario #2 refers to Continental Airlines Go
Forward change strategy, which catapulted the
company from worst to first within a couple of
years.
McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-32
Continental Airlines Change Strategy
Communicate, communicate, communicate
Introduced 15 performance measures
Established stretch goals (repainting planes in 6 months)
Replaced 50 of 61 executives
Rewarded new goals (on-time arrival, stock price)
Customers as drivers of change