MGMT 3000 (Organizational Behavior) Ch 14
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