MGMT 3000 (Organizational Behavior) Ch 14

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Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 14

organizational

change and

development

CHANGE

Making things different

First-order: modification with no shift in assumptions

Second-order: modification with a reframing of assumptions

Pressures for Change

Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change

Introduction or Removal of Government Regulations

Life-Cycle Forces

Growing International Interdependence

Changes in Demographics

Shifting Political Dynamics

Changes in Societal Values

Technological Advances

Aspirations

Pressure for Change

INTERNAL PRESSURES FOR CHANGE ASPIRATION-PERFORMANCE DISCREPANCIES

Aspirations develop through;

past aspirations

past performance

comparison with others

Gaps between what an individual, unit, or organization wants to achieve and what its achieving.

INTERNAL PRESSURES FOR CHANGE LIFE-CYCLE FORCES

Natural and predictable pressures that build as an organization grows and that must be addressed to continue growing.

Integrative Life-Cycle Model

Adapted from Exhibit 14-2: Integrative Life-Cycle Model

Entrepreneurial Stage

Collectivity Stage

Formalization and Control Stage

Elaboration Stage

Need for additional people

Need for stability and structure

Need for balance

EXTERNAL PRESSURES FOR CHANGE

Technological Advances

Government Regulations

Societal Values

Political Dynamics

Demographics

International Interdependence

Planned Change

Process involving deliberate efforts to move from a current undesirable state to a more desirable state.

Adapted from Exhibit 14-3: Process of Planned Change

Process of Planned Change

Unfreezing

Moving

Refreezing

Provide rational for change

Create sense of safety with change

Create guilt/anxiety about not changing

Provide information supporting change

Bring about shifts in behavior

Implement new evaluation systems

Implement new hiring and promotion systems

Create guilt/anxiety about not changing

Factors to Consider

Position Power

Informal Credibility

Expertise

Proven Leadership

Tactical Choices

Speed of Change

Urgency

Degree of Support

Amount and Complexity

Competitive Environment

Knowledge and Skills

Financial and Other Resources

Style of Change

Top-down Style

Participatory Style

Urgency

Degree of Support

Referent and Expert Power of Change Leaders

Resistance to Change

Efforts to block the introduction of new approaches.

Resistance

Factors

Lack of Understanding

Different

Assessments

Self-Interest

Low Tolerance for Change

The DADA Syndrome

Denial – ignore possible or current change

Anger – individuals facing unwanted change become angry about the change

Depression – individuals experience emotional lows

Acceptance – individuals embrace the reality of the situation and make the best of it

Organizational Development (OD)

Organization-wide continuous process designed to improve communication, problem solving, and learning through behavioral science knowledge.

Basic Organization Development Model

Adapted from Exhibit 14-4: Basic Organization Development Model

Diagnosis of Situation

Introduction of interventions

Progress Monitoring

Feedback

Organization Development Interventions

Organization Development

Structural Techniques

Relationship Techniques

T-group Training

Team Building

Survey Feedback

Job Redesign

Management by Objectives

Supplemental Organizational Processes

Adapted from Exhibit 14-5: Organization Development Interventions

Relationship Techniques

Training

managers and associates gain skills and capabilities

Team Building

team members work together

Survey Feedback

data obtained from questionnaires

build behavior skills

interpersonal, listening and collaboration skills

common tool used by all types of organization

diagnose task, process and interpersonal problems

create solutions

work with a facilitator

managers receive information for their unit

expected to hold meeting to discuss problems

Team-building Tips

Right people

Large block of uninterrupted time

High-priority problem/opportunity

Identified problem/opportunity

Structure

Realistic solutions

Implement

Follow up

Structural Techniques

Job Redesign

enlargement of jobs

Goal-Based Leadership

individuals negotiate job goals with managers

Supplemental Organizational

Processes

ongoing meetings between associates and/or managers

held accountable for attainment

understand and address problems

motivates; problem solving, communication, learning

enrichment of jobs

Organizational Learning

Exploitative Learning

How to more effectively use current knowledge

Exploratory Learning

Creating new knowledge and being innovative

SUCCESSFUL OD QUALITIES ACROSS CULTURES…

Flexibility

openness to new

willingness to change

Specific

Knowledge

understanding beliefs and behavior of different cultures

Interpersonal

Sensitivity

ability to listen and resolve problems