Change Management

What is the nature of organizational change?

Change leader.
A change agent who takes leadership responsibility for changing the existing
pattern of behavior of another person or social system.
Change leadership.
Forward-looking.
Proactive.
Embraces new ideas.

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Change leaders versus status quo managers.

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What is the nature of organizational change?

Top-down change.
Strategic and comprehensive change that is initiated with the goals of
comprehensive impact on the organization and its performance capabilities.
Driven by the organizations top leadership.
Success depends on support of middle-level and lower-level workers.

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What is the nature of organizational change?

Bottom-up change.
The initiatives for change come from any and all parts of the organization,
not just top management.
Crucial for organizational innovation.
Made possible by:
Employee empowerment.
Employee involvement.
Employee participation.

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What is the nature of organizational change?

Integrated change leadership.

Successful and enduring change combines advantages of
top-down and bottom-up approaches.
Top-down:
Breaks up traditional patterns.
Implements difficult economic adjustments.
Bottom-up:
Builds capability for sustainable change.
Builds capability for organizational learning.

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What is the nature of organizational change?

Transformational and incremental change.

Unplanned change.
Response to unanticipated events.
Good leaders act on opportunities for reactive change.
Planned change
Aligning the organization with anticipated future challenges.
Activated by proactive leaders who are sensitive to performance
gaps.
Transformational change major and comprehensive
redirection.
Incremental change adjusting existing systems and practices.

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What is the nature of organizational change?

How to lead transformational change:

Establish a sense of urgency for change.
Form a powerful coalition to lead the change.
Create and communicate a change vision.
Empower others to move change forward.
Celebrate short-term wins and recognize those who
help.
Build on success; align people and systems with new
ways.
Stay with it; keep the message consistent; champion the
vision.

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What is the nature of organizational change?

External forces for change:

Globalization.
Market competition.
Local economic conditions.
Government laws and regulations.
Technological developments.
Market trends.
Social forces and values.
Internal forces for change:
Arise when change in one part of the system creates the need for
change in another part of the system.
May be in response to one or more external forces.

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What is the nature of organizational change?

Organizational targets for change:

Tasks
People
Culture
Technology
Structure

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How can planned organizational change be
managed?
Phases of planned change
Unfreezing
The phase in which a situation is prepared for change and felt needs for change are
developed.
Changing
The phase in which something new takes place in the system, and change is actually
implemented.
Refreezing
The phase of stabilizing the change and creating the conditions for its long-term
continuity.

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Lewins three phases of planned organizational
change.

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How can planned organizational change be
managed?

Force-coercion strategy of change.

Uses power bases of legitimacy, rewards, and
punishments to induce change.
Relies on belief that people are motivated by self-
interest.
Direct forcing and political maneuvering.
Produces limited and temporary results.
Most useful in the unfreezing phase.

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How can planned organizational change be
managed?

Rational persuasion strategy of change.

Bringing about change through persuasion backed by
special knowledge, empirical data, and rational argument.
Relies on expert power.
Relies on belief that reason guides peoples decisions and
actions.
Useful in the unfreezing and refreezing phases.
Produces longer-lasting and internalized change.

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How can planned organizational change be
managed?
Shared power strategy of change.
Engages people in a collaborative process of identifying
values, assumptions, and goals from which support for
change will naturally emerge.
Time consuming but likely to yield high commitment.
Involves others in examining sociocultural factors related
to the issue at hand.
Relies on referent power and strong interpersonal skills in
team situations.
Relies on belief that people respond to sociocultural
norms and expectations of others.

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Alternative change strategies and their
leadership implications.

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How can planned organizational change be
managed?
Reasons for people resisting change:
Fear of the unknown
Disrupted habits
Loss of confidence
Loss of control
Poor timing
Work overload
Loss of face
Lack of purpose

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How can planned organizational change be
managed?
Methods for dealing with resistance to change:
Education and communication
Participation and involvement
Facilitation and support
Facilitation and agreement
Manipulation and co-optation
Explicit and implicit coercion

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What is organization development?

Organization development (OD) is a comprehensive approach to

planned organizational change that involves the application of
behavioral science in a systematic and long-range effort to improve
organizational effectiveness.

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What is organization development?

Organization development goals:

Outcome goals focus on task accomplishments.
Process goals focus on the way people work together.
OD seeks to develop the organization members
capacity for self-renewal.
OD is committed to change through freedom of choice,
shared power, and self-reliance.
OD takes advantage of knowledge about human
behavior in organizations.

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What is organization development?

The organization development process:

Establish a working relationship.
Diagnosis.
Intervention.
Evaluation.
Achieve a terminal relationship.

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Organization development and the planned
change process.

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What is organization development?

Action research
The process of systematically collecting data on an organization, feeding it
back to the members for action planning, and evaluating results by collecting
more data and repeating the process as necessary.
Is initiated when someone senses a performance gap.

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What is organization development?

Steps in the action research process:

Problem sensing.
Data gathering.
Data analysis and feedback.
Action planning.
Action implementation.
Evaluation and follow-up.

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Action research as a foundation of organization
development.

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What is organization development?

Individual OD interventions
Sensitivity training (T-groups)
Management training
Role negotiation
Job redesign
Career planning

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What is organization development?

Team OD interventions

Team building

Process consultation

Inter-group team building

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What is organization development?

Organization-wide OD interventions

Survey feedback

Confrontation meeting

Structural redesign

Management by objectives (MBO)

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How can stress be managed in a change
environment?

Stress
A state of tension experienced by individuals facing
extraordinary demands, constraints, or opportunities.
Stressors
Things that cause stress
Originate in work, personal, and nonwork situations.
Have the potential to influence work attitudes, behavior,
job performance, and health.

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How can stress be managed in a change
environment?
Work factors as potential stressors:
Includes:
Excessively high or low task demands.
Role conflicts or ambiguities.
Poor interpersonal relationships.
Too slow or too fast career progress.
Work-related stress syndromes:
Set up to fail.
Mistaken identity.

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How can stress be managed in a change
environment?
Personal factors as potential stressors:
Includes needs, capabilities, and personality.
Stressful behavior patterns of the Type A personality:
Always moving, walking, and eating rapidly.
Acting impatient, hurrying others, disliking waiting.
Doing, or trying to do, several things at once.
Feeling guilty when relaxing.
Trying to schedule more in less time.
Using nervous gestures such as a clenched fist.
Hurrying or interrupting the speech of others.

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How can stress be managed in a change
environment?

Nonwork factors as potential stressors:

Includes:
Family events.
Economics.
Personal affairs.
Spill-over effect on the stress an individual experiences at work.

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How can stress be managed in a change
environment?
Consequences of stress:
Constructive stress.
Acts as a positive influence.
Can be energizing and performance enhancing.
Destructive stress.
Acts as a negative influence.
Breaks down a persons physical and mental systems.
Can lead to job burnout and/or workplace rage.

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Potential negative consequences of a
destructive job stress-burnout cycle.

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How can stress be managed in a change
environment?

Personal wellness:
The pursuit of personal and mental potential though a personal health-
promotion program.
A form of preventative stress management.
Enables people to be better prepared to deal with stress.

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Some material Copyright 2007 John Wiley & Sons Canada, Ltd.