Types of Organizational ChangeStages in the Change ProcessResistance to Change and Ways to Overcome ResistanceResistance to ChangeResistance to Change (cont’d)Resistance Matrix Focus of Resistance: SelfResistance Matrix Focus of Resistance: OthersResistance Matrix Focus of Resistance: Work EnvironmentInnovationInnovation (cont’d)3M’s Rules for an Innovative CultureQualityDiversityDiversity (cont’d)Managing DiversitySlide 16Organizational DevelopmentChange ModelsOD InterventionsOD Interventions (cont’d)Forcefield AnalysisSlide 22Types of Organizational ChangeTypes of Organizational ChangeStages in the Change ProcessStages in the Change ProcessExhibit 7–2Resistance to Change and Ways to Overcome ResistanceResistance to Change and Ways to Overcome ResistanceExhibit 7–3Resistance to ChangeResistance to Change•Sources of Resistance to Change–Facts•Provable statements that identify reality.–Beliefs•Subjective opinions that cannot be proven.–Values•What people believe are important and worth pursuing or doing.Resistance to Change (cont’d)Resistance to Change (cont’d)•Focuses of Resistance to Change–Self•The reaction of individuals who feel their self-interests are threatened by change.–Others•The consideration given to how others will be affected by change.–Work environment•Change in the working environment threatens individuals control of the environment.Resistance MatrixFocus of Resistance: SelfResistance MatrixFocus of Resistance: SelfModel 7–1aResistance MatrixFocus of Resistance: OthersResistance MatrixFocus of Resistance: OthersModel 7–1bResistance MatrixFocus of Resistance: Work EnvironmentResistance MatrixFocus of Resistance: Work EnvironmentModel 7–1cInnovationInnovation•Innovative Organizational Structures–Flat organizations with limited bureaucracy–Generalist division of labor–Coordinate with cross functional teams–Informal with decentralized authority–Create separate systems for innovative groups–Attract and retain creative employees–Reward innovation and creativityInnovation (cont’d)Innovation (cont’d)•Innovative Organizational Cultures–Encourage creativity and innovation–Develop structures to match their creative culture–Encourage risk-taking–Foster Intrapreneurship–Have open systems–Focus on ends rather than means–Accept ambiguous and impractical ideas–Tolerate conflict3M’s Rules for an Innovative Culture3M’s Rules for an Innovative CultureExhibit 7–4QualityQuality•Core Values of Total Quality Management (TQM)–To focus everyone in the organization on delivering customer value.–To continuously improve the system and its processes.•The Continuous Improvement Culture–Successful implementation of TQM requires incorporation of TQM values into the organizational culture.DiversityDiversity•Diversity–The degree of differences among members of a group or an organization.•Race/ethnicity, religion, gender, age, ability•Diversity in all forms is increasing in the general population and the workforce.–Incorporating diversity opens up a larger labor pool of skilled workers from which to recruit.–Diversity is a legal requirement, an ethical obligation, and a competitive advantage.Diversity (cont’d)Diversity (cont’d)•Valuing Diversity–Emphasizing training employees of different races and ethnicity, religions, genders, ages, and abilities and with other differences to function together effectively.•Managing Diversity–Emphasizes fully utilizing human resources through organizational actions that meet all employees’ needs.Managing DiversityManaging DiversityExhibit 7–6Organizational DevelopmentOrganizational Development•Organizational Development (OD)–The ongoing planned process of change used as a means of improving performance through interventions.•OD Interventions–Specific actions taken to implement specific changes.•Change Agent–The person selected by human resources management to be responsible for the OD program.Change ModelsChange ModelsExhibit 7–7OD InterventionsOD InterventionsExhibit 7–8OD Interventions (cont’d)OD Interventions (cont’d)•Forcefield Analysis–An OD intervention that diagrams the current level of performance, the hindering forces toward change, and the driving force toward change.•Survey Feedback–An OD intervention that uses a questionnaire to gather data to use as the basis for change.Forcefield AnalysisForcefield AnalysisExhibit 7–9OD Interventions (cont’d)OD Interventions (cont’d)•Team Building–An OD intervention designed to help work groups increase structural and team dynamics performance to get the job done.•Process Consultation–An OD intervention designed to improve team dynamics by focusing on how people interact as they get the job