Managing

Organizational
Change
Strategic Planning and

Organizational Development

Chapter 16

Learning Objectives
1.
2.

3.

4.
5.
6.

Characterize the prevalence of the change process in

organizations.
Understand what, exactly, is changed when
organizational change comes about, and the forces
responsible for unplanned organizational change.
Describe what is meant by strategic planning and
explain the types of strategic changes that
organizations make.
Identify the 10 steps in the strategic planning process.
Explain why people are resistant to organizational
change and how this resistance may be overcome.
Identify and describe the major organizational
development techniques that are used today.
Copyright 2003, Prentice Hall

Organizational Change
Planned or unplanned transformations in an
organizations structure, technology, and/or
people.
First-Order Change:
Change Change that is
continuous in nature and involves no major
shifts in the way an organization operates.
Second-Order Change:
Change Radical change;
major shifts involving many different levels of
the organization and many different aspects
of business.
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The Change Process

Targets:

What is Changed?

Organizational structure
Technology
People
Forces behind Unplanned Change:

Shifting employee demographics

Performance gaps
Government regulation
Global competition
Changing economic conditions
Advances in technology
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Targets of Change

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Strategic Planning
The process of formulating,
implementing, and evaluating
decisions that enable an organization
to achieve its objectives.
Strategic Planning Concepts:
Basic assumptions
Targets of strategic plans
10 steps in the strategic planning
process
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Strategic Planning
Assumptions
Strategic

planning is
deliberate.
Strategic planning
occurs when current
objectives no longer
can be met.
New organizational
objectives require
new strategic plans.
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Targets of Strategic Plans

Products

and

services
Organizational
structure
Downsizing
Rightsizing
Outsourcing

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Steps in Strategic Planning

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Varieties of Strategies

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Reactions to Change

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Resistance to Change

The tendency for employees to be

unwilling to go along with organizational
changes, either because of individual fears
of the unknown, or organizational
impediments.
Related Topics:

Individual barriers to change

Organizational barriers to change
Readiness for change
Overcoming resistance to change

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Individual Barriers to
Change
Economic

insecurity
Fear of the unknown
Threats to social
relationships
Habit
Failure to recognize
the need for change
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Organizational Barriers to
Change
Structural

inertia
Work group
inertia
Threats to
existing balance
of power
Previously
unsuccessful
change efforts
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Readiness for Change

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Overcoming Resistance to
Change

Shape political dynamics

Identify and neutralize change
resisters
Educate the workforce
Involve employees in the
change efforts
Reward constructive
behaviors
Create a learning organization
Take the situation into account

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Responses to Resistance

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Learning Organization
An organization that is successful at
acquiring, cultivating, and applying
knowledge that can be used to help it
adapt to changes.
Necessary steps:
Establish commitment to change
Adopt an informal organizational
structure
Develop an open organizational culture
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Situational Responses

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Organizational
Development
A set of social science techniques designed to
plan change in organizational work settings for
purposes of enhancing the personal development
of individuals and improving the effectiveness of
organizational functioning.
OD Interventions:

Management by Objectives
Survey Feedback
Appreciative Inquiry
Action Labs
Quality of Work Life Programs

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Management by
Objectives
The technique by which managers and their subordinates
work together to set and then meet organizational goals.

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Survey Feedback
An OD technique in which questionnaires and
interviews are used to collect information about
issues of concern to an organization. This
information is shared with employees and is used as
the basis for planning organizational change.

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Appreciative Inquiry
An OD intervention that focuses attention away
from an organizations shortcomings and toward
its capabilities and its potential; based on the
assumption that members of organizations
already know the problems they face and that
they stand to benefit more by focusing on what is
possible.
Four steps:

Discovery
Dreaming
Designing
Delivering

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Action Lab
An OD intervention in
which teams of
participants work off-site
to develop and
implement new ways of
solving organizational
problems by focusing on
the ineffectiveness of
current methods.
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Quality of Work Life

An OD technique designed to improve
organizational functioning by humanizing the
workplace, making it more democratic, and
involving employees in decision making.
Work Restructuring:
Restructuring The process of changing
the way jobs are done to make them more
interesting to workers.
Quality Circles (QCs): An approach to improving
the quality of work life, in which small groups of
volunteers meet regularly to identify and solve
problems related to the work they perform and
the conditions under which they work.
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Critical Questions about

OD
Does Organizational
Development really
work?
Is Organizational
Development
dependent on
national culture?
Is Organizational
Development
inherently ethical?

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OD and National Values

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The Ethics of OD

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