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OSU BA 352 - Managing Change

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Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Managing ChangeManaging ChangeChapter SixteenModels of Planned ChangeModels of Planned Change•Lewin’s Change Model•A Systems Model of Change•Kotter’s Eight Steps for Leading Organizational Change•Organizational Development•Understanding and Managing Resistance to Understanding and Managing Resistance to ChangeChange•Why People Resist Change in the Workplace•Alternative Strategies for Overcoming Resistance to Change16-1aChapter Sixteen OutlineChapter Sixteen Outline•Demographic CharacteristicsDemographic Characteristics- the workforce is more diverse- there is a business imperative to effectively manage diversity•Technological AdvancementsTechnological Advancements- organizations are increasingly using technology as a means to improve productivity and market competitiveness•Market ChangesMarket Changes- the emergence of a global economy is forcing companies to be more competitive and to do business differently- organizations are forging new partnerships and alliances aimed at creating new products and services•Social and Political PressuresSocial and Political Pressures- society and its legislative bodies can put pressure on organizations to change the way they do business – the tobacco industry is a good example16-2aExternal ForcesExternal Forces: originate outside the organization.Forces of ChangeForces of Change•Human Resource Problems/ProspectsHuman Resource Problems/Prospects- employees’ needs, job satisfaction, organizational commitment, behavior, and performance are forces of change- dissatisfied employees and high levels of absenteeism and turnover are signs that change is needed•Managerial Behavior/DecisionsManagerial Behavior/Decisions- the level of conflict between managers and their direct reports is a force for change- inappropriate leader behavior may result in employee problems requiring change- inequitable reward systems are an additional force for change16-2bInternal ForcesInternal Forces: originate inside the organization.Forces of Change (continued)Forces of Change (continued)16-3•UnfreezingUnfreezing- Creates the motivation to change- Encourages the replacement of old behaviors and attitudes with those desired by management- Entails devising ways to reduce barriers to change- Creates psychological safety• • ChangingChanging- Provides new information, new behavioral models, or new ways of looking at things- Helps employees learn new concepts or points of view- Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change•RefreezingRefreezing- Helps employees integrate the changed behavior or attitude into their normal way of doing things- Positive reinforcement is used to reinforce the desired change- Coaching and modeling help reinforce the stability of changeLewin’s Change ModelLewin’s Change ModelStepStepDescriptionDescriptionEstablish a senseEstablish a sense Unfreeze the organization by creating aof urgencyof urgency compelling reason for why change is needed.Create the guidingCreate the guidingCreate a cross-functional, cross-level group ofcoalitioncoalition people with enough power to lead the change.Develop a visionDevelop a vision Create a vision and strategic plan to guide theand strategyand strategy change process.Communicate theCommunicate the Create and implement a communication strategychange visionchange vision that consistently communicates the new visionand strategic plan.Empower broad-Empower broad- Eliminate barriers to change, and use targetbased actionbased action elements of change to transform theorganization. Encourage risk taking andcreative problem-solving.16-5aTable 16-1aKotter’s Steps for Leading Kotter’s Steps for Leading Organizational ChangeOrganizational ChangeStepStepDescriptionDescriptionGenerate short-Generate short- Plan for and create short-term “wins” orterm winsterm wins improvements. Recognize and reward peoplewho contribute to the wins.Consolidate gainsConsolidate gains The guiding coalition uses credibility fromand produce moreand produce more short-term wins to create more change.changechange Additional people are brought into the changeprocess as change cascades throughout theorganization. Attempts are made to reinvigorate the change process.Anchor newAnchor new Reinforce the changes by highlightingapproaches in theapproaches in the connections between new behaviors and cultureculture processes and organizational success. Developmethods to ensure leadership development andsuccesses.16-5bTable 16-1bKotter’s Steps for Leading Kotter’s Steps for Leading Organizational Change (continued)Organizational Change (continued)The leading reasons why people resist change The leading reasons why people resist change are:are:•An individual’s predisposition toward change•Surprise and fear of the unknown•Climate of mistrust•Fear of failure•Loss of status and/or job security16-7aResistance to ChangeResistance to Change:: an emotional/behavioral response to real or imagined work change.Resistance To ChangeResistance To ChangeLeading Reasons Why People Resist Change Leading Reasons Why People Resist Change (cont):(cont):•Peer pressure•Disruption of cultural traditions and/or group relationships•Personality conflicts•Lack of tact and/or poor timing•Nonreinforcing reward systems16-7bFor Class DiscussionFor Class Discussion:: What do you think are the top three reasons people resist change?Resistance to Change (cont)Resistance to Change (cont)16-8Hands on Exercise• Why is readiness for change an important consideration?• What survey questions resulted in the lowest readiness for change? Why did this occur?• What can managers do to prepare an organization for change?Assessing an Organization’s Assessing an Organization’s Readiness for ChangeReadiness for Change16-9aTable 16-2aDrawbacksDrawbacksAdvantagesAdvantagesCommonly Commonly Used in Used in SituationsSituationsCan be very time consuming if participators design an inappropriate changePeople who participate will be committed to implementing change, and any relevant information they have will be integrated into the change planWhere the initiators do not have all the information they need to design the change and where others have considerable power to resistParticipation + Participation + Involvement


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OSU BA 352 - Managing Change

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