Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Discuss the external and internal forces that can create the need for organizational change.Describe Lewin’s change model and the systems model of change.Explain Kotter’s eight steps for leading organizational change.Review the 10 reasons employees resist change.Identify alternative strategies for overcoming resistance to change.Discuss the process organizations use to build their learning capabilities. Managing Change and Organizational LearningLearning ObjectivesChapter SixteenExternal forces for change: originate outside the organization.16-1McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.External Forces of ChangeMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Demographic characteristics:The workforce is more diversethere is a business imperative to effectively manage diversityTechnological advancements:organizations are increasingly using technology as a means to improve productivity and market competitivenessMarket changes:the emergence of a global economy is forcing companies to be more competitive and to do business differentlyorganizations are forging new partnerships and alliances aimed at creating new products and servicesSocial and political pressures:society and its legislative bodies can put pressure onorganizations to change the way they do business--thetobacco industry is a good example16-2McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.External Forces of Change (Cont.)McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Internal forces for change: originate outside the organization.16-3McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.Internal Forces of ChangeMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.16-4Lewin’s Change ModelMcGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.UnfreezingCreates the motivation to changeEncourages the replacement of old behaviors and attitudes withthose desired by managementEntails devising ways to reduce barriers to changeCreates psychological safetyChangingProvides new information, new behavioral models, or new ways oflooking at thingsHelps employees learn new concepts or points of viewRole models, mentors, experts, benchmarking results, andtraining are useful mechanisms to facilitate changeRefreezingHelps employees integrate the changed behavior or attitude into their normal way of doing thingsPositive reinforcement is used to reinforce the desired changeCoaching and modeling help reinforce the stability of changeMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.16-5 Figure 16-1A Systems Model of ChangeMcGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.Target Elements of ChangeOrganizingArrangementsGoalsSocial FactorsMethodsPeopleInternal* Strengths* WeaknessesExternal* Opportunities* Threats* OrganizationalLevel* Department/group level* IndividuallevelInputs OutputsStrategyMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.16-6 Table 16-1Steps to Leading Organizational ChangeCreate and implement a communication strategy that consistently communicates the new vision and strategic plan.Communicate the change visionCreate a vision and strategic plan to guide the change process.Develop a vision and strategyCreate a cross-functional cross-level group of people with enough power to lead the change.Create the guiding coalitionUnfreeze the organization by creating a compelling reason for why change is needed.Establish a sense of urgencyDescriptionStepMcGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.16-7 Table 16-1Steps to Leading Organizational Change (Cont.)Plan for and create short-term “wins” or improvements. Recognize and reward people who contribute to the wins.Generate short-term winsEliminate barriers to change and use target elements of change to transform the organization. Encourage risk taking and creative problem solving.Empower broad based actionDescriptionStepMcGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.16-8 Table 16-1Steps to Leading Organizational Change (Cont.)The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process.Consolidate gains and produce more changeReinforce the changes by highlighting connections between new behaviors and processes and organizational success. Develop methods to ensure leadership development and succession.Anchor new approaches in the cultureDescriptionStepMcGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Organization Development: a set of techniques or tools that are used to implement organizational change.OD Involves Profound ChangeOD is Value LoadedOD is a Diagnosis/Prescription CycleOD is Process-Oriented16-9McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.Characteristics of Organization DevelopmentMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Survey feedbackProcess consultationTeam buildingIntergroup developmentTechnostructural activities16-10 Table 16-2McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.Some OD Interventions for Implementing ChangeMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.1. An individual’s predisposition toward change2. Surprise and fear of the unknown3. Climate of mistrust4. Fear of failure5. Loss of status and/or job security16-11McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.Why People Resist Change in the WorkplaceMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.6. Peer pressure7. Disruption of cultural traditions and/or group relationships8. Personality conflicts9. Lack of tact
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