Organizational Behavior and Management Sixth Edition lvanceyich Matteson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
CHAPT 16 Managing Organizational Change and Innoyation dEFinE what is meant by organizational change management oIDENTIFY the major steps in undertaking organizational change effort DESCRiBE the two major types of change forces oDISCUSS the role of problem diagnosis in the organizational change management. TER IDENTIFY a number of change methods and the relative depth of intervention each represents .RECoGNize the impediments and conditions that may limit change management effectiveness DISCUSS the ethical implications of change management OUNDERSTAND how adopting innovation is a natural outcome in organizations that effectively manage change
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16 C H A P T E R Managing Organizational Change and Innovation ⚫DEFINE what is meant by organizational change management. ⚫IDENTIFY the major steps in undertaking organizational change effort. ⚫DESCRIBE the two major types of change forces. ⚫DISCUSS the role of problem diagnosis in the organizational change management. ⚫IDENTIFY a number of change methods and the relative depth of intervention each represents. ⚫RECOGNIZE the impediments and conditions that may limit change management effectiveness. ⚫DISCUSS the ethical implications of change management. ⚫UNDERSTANDhow adopting innovation is a natural outcome in organizations that effectively manage change
16-3 Managing Organizational Change Change is an inevitable, pervasive, persistent, and permanent condition for all organizations o Organizations futures depend on their ability to master change o Effective managers must view managing planned change as an integral responsibility o Contemporary managers will have to develop approaches for adopting and implementing nnovation Mcgraw-hillarwin Copyright o 2002 by The McGraw-Hill Companties, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-3 Managing Organizational Change ⚫ Change is an inevitable, pervasive, persistent, and permanent condition for all organizations. ⚫ Organizations’ futures depend on their ability to master change. ⚫ Effective managers must view managing planned change as an integral responsibility. ⚫ Contemporary managers will have to develop approaches for adopting and implementing innovation
16-4 Organizational Change Approaches Managing Change through power Managing Change throug h reason Managing Change through reeducation Mcgraw-hillarwin Copyright o 2002 by The McGraw-Hill Companies, Inc. All/its reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-4 Organizational Change Approaches Managing Change through Reason Managing Change through Power Managing Change through Reeducation
16-5 Learning Principles in Change Management Unfreezing old learning o Requires people who want to learn new ways to think and act. o Deals directly with resistance to change Movement to new learning o Requires training, demonstration, and empowerment. Empower employees to take on new behaviors. Refreezing the learned behavior o Occurs through the application of reinforcement and feedback. o Strategies designed to minimize the loss of new knowledge, skills Mcgraw-hillarwin Copyright@2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-5 Learning Principles in Change Management Unfreezing old learning ⚫ Requires people who want to learn new ways to think and act. ⚫ Deals directly with resistance to change. Movement to new learning ⚫ Requires training, demonstration, and empowerment. ⚫ Empower employees to take on new behaviors. Refreezing the learned behavior ⚫ Occurs through the application of reinforcement and feedback. ⚫ Strategies designed to minimize the loss of new knowledge, skills
16-6 Change Agents Interveners bring a different perspective to the situation and challenge the status quo for the purpose of improving effectiveness. ● External Change agents e Temporary employees of the organization engaged only for thle duration of the change process o Internal Change Agents An individuals working for the organization who knows something about its problems o External-Internal change agents e Designating an individual or small group within the organization to serve with the external change agent. Mcgraw-hillarwin Copyright 2002 by The McGraw-Hill Companies, Inc. Alnghts reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-6 Change Agents ⚫ External Change Agents ⚫ Temporary employees of the organization engaged only for the duration of the change process. ⚫ Internal Change Agents ⚫ An individuals working for the organization who knows something about its problems ⚫ External-Internal Change Agents ⚫ Designating an individual or small group within the organization to serve with the external change agent. Interveners bring a different perspective to the situation and challenge the status quo for the purpose of improving effectiveness
16-7 Individual Resistance to Change Reasons for resistance include Threat of a loss of position, power, and authority ● Economic insecurity Possible alteration of social friendships and interactivit Fear of the unknown o Failure to recognize or be informed about the need to change o Cognitive dissonance or discomfort created by what is new or differeni Megraw-hillarwin Copyright@ 2002 by The McGraw-Hill Compames, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-7 Individual Resistance to Change ⚫ Threat of a loss of position, power, and authority ⚫ Economic insecurity ⚫ Possible alteration of social friendships and interactivity ⚫ Fear of the unknown ⚫ Failure to recognize or be informed about the need to change ⚫ Cognitive dissonance or discomfort created by what is new or different Reasons for Resistance Include:
16-8 Organizational Resistance to Change Barriers to Change Include: o The professional and functional orientation of the department, unit, or team Structural inertia Possible threat to the organizational power balance Failures at previous change Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-8 Organizational Resistance to Change Barriers to Change Include: ⚫ The professional and functional orientation of the department, unit, or team. ⚫ Structural inertia ⚫ Possible threat to the organizational power balance ⚫ Failures at previous change
16-9 Strategies for Overcoming Resistance to Change Key considerations o Individuals and organizations must have a reason to change Involvement of people at all levels of the hierarchy o Ongoing communication Creation of a learning organization Open discussion and accessibility to information Clear vision expressed at all levels Strong emphasis on independence, worth and importance of people Clear goals and performance expectations Commitment to learning Concern for measurable results Curiosity to try new methods Mcgraw-hillarwin Copright o 2002 by The mcgrane- Hill Compamies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-9 Strategies for Overcoming Resistance to Change Key Considerations ⚫ Individuals and organizations must have a reason to change ⚫ Involvement of people at all levels of the hierarchy ⚫ Ongoing communication ⚫ Creation of a learning organization: Open discussion and accessibility to information Clear vision expressed at all levels Strong emphasis on independence, worth and importance of people Clear goals and performance expectations Commitment to learning Concern for measurable results Curiosity to try new methods
16-10 A Model For Managing Organizational Change Key Management responsibilities: Sorting out the information that reflects the magnitude of change forces Information is the basis for determining when change is or is not needed Diagnosing the problem Identifying relevant alternative techniques Implementing the change Monitoring the change process and change results See exhibit 16.1 Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 16-10 A Model For Managing Organizational Change ⚫ Sorting out the information that reflects the magnitude of change forces ⚫ Information is the basis for determining when change is or is not needed ⚫ Diagnosing the problem ⚫ Identifying relevant alternative techniques ⚫ Implementing the change ⚫ Monitoring the change process and change results See Exhibit 16.1 Key Management Responsibilities:
