Managing change

ROADMAP
The context
What is organizational change?
Processes for managing change
People and change
Organizational Development
Conflict resolution
Fostering innovation
2

GHOSHAL & BARTLETT
Old values: compliance, control, contract and
constraint
New values: discipline, support, trust and stretch
Successful change involves simplification,
integration, and regeneration
Phased approach essential, along with focus on
people’s attitudes, assumptions and behaviors
Brings both organizational design and human
resources lessons to bear
Ghoshal and Bartlett provide a high-level model for
change, let’s look at some of the details and
lessons learned at a more granular level
April 27, 2006
3

WHAT IS ORGANIZATIONAL
CHANGE?An alteration of an organization’s environment, structure, culture,
technology, or people
 A constant force
 An organizational reality
 An opportunity or a threat
Change agent
 A person who initiates and assumes the responsibility for managing a change in an
organization
April 27, 2006
4

BASIC QUESTIONS FOR CHANGE
AGENTS
What are the forces acting upon me?
 What are the pressures I should take into consideration as I decide what to change
and how I should change it?
What should we change?
 Should the changes be strategic and companywide or relatively limited?
How should we change it?
 How should we actually implement the change?
April 27, 2006
5
G.Dessler, 2003

FORCES FOR CHANGE
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6
External Forces Internal Forces
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude
Prentice Hall, 2002

THREE CATEGORIES OF CHANGE
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LIS580- SPRING 2006 7
Organizational Culture
Prentice Hall, 2002

MODEL FOR PLANNED
ORGANIZATIONAL CHANGE
April 27, 2006
FIGURE 8–1Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,
pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003

TWO VIEWS OF THE CHANGE
PROCESS“Calm waters” metaphor
 A description of traditional practices in and theories about organizations that likens
the organization to a large ship making a predictable trip across a calm sea and
experiencing an occasional storm
“White-water rapids” metaphor
 A description of the organization as a small raft navigating a raging river
April 27, 2006
LIS580- SPRING 2006 9Prentice Hall, 2002

CHANGE IN “CALM WATERS”
Kurt Lewin’s Three-Step Process
Unfreezing
The driving forces, which direct behavior away
from the status quo, can be increased
The restraining forces, which hinder movement
from the existing equilibrium, can be decreased
The two approaches can be combined
Implementation of change
Refreezing
April 27, 2006

CHANGE IN “WHITE-WATER
RAPIDS”
Change is constant in a dynamic
environment
The only certainty is continuing
uncertainty
Competitive advantages do not last
Managers must quickly and properly
react to unexpected events
Be alert to problems and opportunities
Become change agents in stimulating, implementing
and supporting change in the organization
April 27, 2006

IS A NEW STRUCTURE REALLY
REQUIRED?
April 27, 2006
LIS580- SPRING 2006 12FIGURE 8–2
Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a
Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes or
even reject the design. Here’s a
step-by-step process for
resolving problems.
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes or
even reject the design. Here’s a
step-by-step process for
resolving problems.
G.Dessler, 2003

IS A NEW STRUCTURE REALLY
REQUIRED? (CONT’D)
April 27, 2006
FIGURE 8–2b
Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a
Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
G.Dessler, 2003

1. Create a Sense of
Urgency
2. Decide What to
Change
3. Create a Guiding
Coalition and
Mobilize Commitment
4. Develop and
Communicate a
Shared Vision
5. Empower Employees
to Make the Change
6. Generate Short-Term
Wins
7. Consolidate Gains
and Produce More
Change
8. Anchor the New
Ways of Doing
Things in the
Company Culture
9. Monitor Progress
and Adjust the
Vision as Required
A NINE-STEP PROCESS FOR
LEADING ORGANIZATIONAL
CHANGE
April 27, 2006
G.Dessler, 2003

WHY PEOPLE RESIST CHANGE
April 27, 2006

HOW IMMUNE IS THE PERSON TO
CHANGE?
April 27, 2006
FIGURE 8–3Source: Robert Kegan and Lisa Lahey, “The Real Reason People
Won’t Change,” Harvard Business Review, November 2001, p. 89. G.Dessler, 2003

DEALING WITH CHANGE
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G.Dessler, 2003

BARRIERS TO EMPOWERMENT
April 27, 2006
FIGURE 8–5
Source: Reprinted by permission of Harvard Business School Press. From
Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright ©
1996 by the President and Fellows of Harvard College, all rights reserved. G.Dessler, 2003

ORGANIZATIONAL DEVELOPMENT
Organizational Development (OD)
 An approach to organizational change in which the employees themselves
formulate the change that’s required and implement it,
usually with the
aid of a trained
consultant.
April 27, 2006
G.Dessler, 2003

OD INTERVENTIONS
Human Process Interventions
Aimed at enabling employees to develop a better
understanding of their own and others’ behaviors for
the purpose of improving that behavior such that the
organization benefits.
Sensitivity Training (Laboratory or T-
groups)
Purpose is to increase participants’ insight into their
own behavior and that of others by encouraging an
open expression of feelings in a trainer-guided group.
April 27, 2006
G.Dessler, 2003

OD INTERVENTIONS (CONT’D)
Team Building
 The process of improving the effectiveness of a team through action research or
other techniques.
Survey Research
 The process of collecting data from attitude surveys filled out by employees of an
organization, then feeding the data back to workgroups to provide a basis for
problem analysis and action planning.
April 27, 2006
G.Dessler, 2003

April 27, 2006
G.Dessler, 2003

TECHNOSTRUCTURAL
APPLICATIONS OF OD
Formal Structure Change Program
 An intervention technique in which employees collect information on existing formal
organizational structures and analyze it for the purpose of redesigning and
implementing
new organizational
structures.
April 27, 2006
G.Dessler, 2003

STRATEGIC APPLICATIONS OF OD
Strategic Intervention
An OD application aimed at effecting a suitable fit
among a firm’s strategy, structure, culture, and external
environments.
Integrated Strategic Management
An OD program to create or change a company’s
strategy by:
 Analyzing the current strategy
 Choosing a desired strategy
 Designing a strategic change plan
 Implementing the new plan.
April 27, 2006
G.Dessler, 2003

ORGANIZATIONAL STRESSORS:
ROLE DEMANDSRole conflicts
 Work expectations that are hard to satisfy
Role overload
 Having more work to accomplish than time permits
Role ambiguity
 When role expectations are not clearly understood
April 27, 2006
Prentice Hall, 2002

CONFLICT HANDLING STYLES
April 27, 2006
FIGURE 8–7Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus, OH:
Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p. 223. G.Dessler, 2003

CONFLICT RESOLUTION MODES
April 27, 2006
G.Dessler, 2003

STIMULATING INNOVATION
Creativity
The ability to combine ideas in a unique way or to make
unusual connections
Innovation
The process of taking a creative idea and turning it into
a useful product, service, or method of operation
 Perception
 Incubation
 Inspiration
 Innovation
April 27, 2006
Prentice Hall, 2002

STRUCTURAL VARIABLES
AFFECTING
INNOVATIONOrganic structures
Positively influence innovation through less work
specialization, fewer rules and decentralization
Easy availability of plentiful resources
Allow management to purchase innovations, bear the
cost of instituting innovations, and absorb failures
Frequent inter-unit communication
Helps to break down barriers to innovation by
facilitating interaction across departmental lines
April 27, 2006
Prentice Hall, 2002

Managing change

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Managing change