Business Discussion
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Newstrom14e_PPT_Ch14.pptxChapter Fourteen Managing Change
Organizational
Behavior
John W. Newstrom
Human Behavior at
Work
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14e
Learning Objectives
The nature of change
Cost and benefits of change
Resistance to change
Basic frameworks for interpreting change
Role of transformational leadership in change
Practices to build support for change
Meaning and characteristics of OD
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Nature of Change at Work
Change: Any alteration occurring at work or in the work environment that affects the ways in which employees must act
Widespread effect on the whole organization
Human and technical problem
Disrupts equilibrium
Established when people develop a stable set of relations with their environment
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Role of Managers with Regard to Change
Anticipating events, initiating change, and taking control of the organization’s destiny
Proactive
Responding to events, adapting to change, and tempering the consequences of change
Reactive
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Responses to Change
How people feel about a change determines how they will respond to it
Caused by:
Personal history
Work environment
Hawthorne effect: Group’s perception of being observed and one’s interpretation of its significance tends to change the group
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Responses to Change
Group response - People show their attachment to the group by responding uniformly to a change
Homeostasis: People act to establish a steady state of need fulfillment and to protect themselves from disturbance of that balance
Groups return to their perceived best way of life when any change occurs
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Figure 14.1 - Unified Social Response to Change
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Costs and Benefits
Intentional change: Occurs when individuals weigh the positive and negative aspects of a change
Psychic costs: Psychological costs that affect a person’s inner self
Repetitive change syndrome: Sustained series of small or moderate changes over a period of time
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Costs and Benefits
Produces cumulative effects that overload a person’s system
Management should consider each change
Help individuals understand it and experience a net gain from it
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Resistance to Change
Any employee behaviors designed to discredit, delay, or prevent a work change
Causes of resistance
Organizational cultures that overvalue criticism of new ideas
Undercutting of changes behind the scenes
Indecisive managers, suffering analysis paralysis
Emphasis on flashy proposals, no follow-through, and bunker mentality
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Nature and Effects
Perceived threats
Real or imagined
Intended or unintended
Direct or indirect
Large or small
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Nature and Effects
Success of a change depends on how skillfully it is managed
Chain-reaction effect: Occurs when a change that directly affects one or more persons leads to a direct or indirect reaction from people sharing a mutual interest
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Reasons for Resistance
Nature of the change itself
Method by which change is introduced
Personal factors
Reluctance to exchange certainty for uncertainty
Threats to job security
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Reasons for Resistance
Lack of trust in management
Low tolerance for change
High degree of parochial self-interest
Perceived lack of a demonstrated problem
Someone else appears to gain the benefits
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Figure 14.2 - Parallel Stages of Reactions to Terminal Illness and Organizational Change
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Figure 14.3 - Types of Resistance to Change among Employees
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Suggestions to Tackle Resistance
Acknowledge employee feelings
Encourage employees to let go of the past and to embrace what is new
Insist on an outstanding effort to make the change
Break tasks down into manageable steps
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Possible Benefits of Resistance
Encourages reexamination of change proposals
Modifications are made to the process to ensure they are appropriate
Identifies problem areas where difficulties may occur
Helps take corrective action before they develop
Encourages better communication, leading to acceptance
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Transformational Leaders
Initiate bold strategic changes to position an organization for its future
Create vision
Communicate charisma
Important tool that charismatic leaders use involves the art of storytelling
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Transformational Leaders
Stimulate learning
Double-loop learning: Capacity to learn from the experience of change
Prepare participants to manage future changes effectively
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Stages of Change
Unfreezing: Old ideas and practices need to be cast aside so new ones can be learned
Changing: New ideas, new methods, and new technologies are learned
Refreezing: What has been learned is integrated into actual practice
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Figure 14.4 - A Model of the Equilibrium State and Change Process
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Methods to Introduce Change
Adding supporting forces and making recipients aware of them
Removing restraining forces
Increasing the actual strength of a supporting force
Communicating that rewards or coercive power will be used to induce change
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Methods to Introduce Change
Persistently using supporting forces until the change is completed
Decreasing the strength of a restraining force
Converting a restraining force into a supporting force
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Building Support for Change
Use group forces
Provide a rationale for change
Give importance to expectations
Encourage participation
Offer economic and psychic rewards
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Building Support for Change
Ensure employee security
Communicate and educate
Stimulate employee readiness
Work with the total system
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Organization Development (OD)
Systematic application of behavior science knowledge at various organizational levels to bring about planned change
Recognizes organizations as systems with dynamic interpersonal relationships, holding individuals together
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Organization Development (OD)
Objective is to make organizations more:
Humanly responsive
Effective
Capable of continuous organizational learning and self-renewal
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Foundations of Organization Development
Systems orientation
Interplay of structure, technology, and people
Behavior of employees in different groups, departments, and locations
Emphasis is on the manner in which the parts relate
Understanding causality - Causal variables, intervening variables, and end-result variables
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Figure 14.6 - Variables in the Organization Development Approach
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Figure 14.7 - Common Organization Development Assumptions
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Characteristics of Organizational Development
Humanistic values: Positive beliefs about the potential and desire for growth among employees
Change agent: Spark change within the system while remaining partially independent of it
Problem solving
Action research: Cyclical process of using research to guide action
Generates new data as the basis for new actions
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Interventions
Structured activities designed to help individuals or groups improve their work effectiveness
Classified by their emphasis on individuals or groups
Appreciative inquiry: Turns employee attention away from a negative focus on problems, missteps, deficiencies, shortcomings, and blaming
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Figure 14.8 - Typical Stages in Organization Development
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