CHAPTER 16 MANAGING ORGANISATIONS THROUGH CHANGE & CONFLICT

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LECTURE OUTLINE
Managing change

Managing resistance to change

Managing conflict

Relationship between conflict &

change

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MANAGING CHANGE
Managing change:
Diagnosing the need for change

Internal factors External factors

The change cycle

Effective organisational change is cyclical

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MANAGING CHANGE
The change cycle
8.
Evaluation against desired outcomes

1.
Performance gap

2.
Identify a desired future

3.
7.
Implementation Recognise need for change

6.
Selection of appropriate alternatives

4. 5.
Development of alternatives Problem diagnosis

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MANAGING CHANGE
competition politics economy
technology

culture
jobs The organisation structure

Internal change factors

regulations
External change factors

employees

imports technical development

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MANAGING RESISTANCE TO CHANGE

Individual resistance to change:
Self-interest Misunderstanding Lack of trust Differential assessment

Ability to adjust

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MANAGING RESISTANCE TO CHANGE

Managing resistance to change:

Freeze cycle approach Unfreezing
Initial awareness of need for change is developed

Changing
Focus on learning needed new behaviours

Freezing
Reinforcing new learned behaviours

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MANAGING RESISTANCE TO CHANGE

THREE-STEP PROCESS:

UNFREEZE UNFREEZE

CHANGE

REFREEZE

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MANAGING RESISTANCE TO CHANGE Overcoming resistance to change:

Methods adopted by managers Education & communication Participation & involvement Facilitation & support Negotiation & agreement Manipulation & cooptation Explicit & implicit coercion
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MANAGING RESISTANCE TO CHANGE

Overcoming resistance
Education & communication
Participation & involvement

Facilitation & support

METHODS
(Kotter & Schlesinger) Explicit & implicit coercion

Manipulation & cooptation

Negotiation & agreement

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MANAGING RESISTANCE TO CHANGE

Force-field analysis:
Method involving analysing the two types of forcesdriving forces & restraining forcesthat influence any proposed change, then assessing how best to overcome resistance

Driving forces Factors pressuring for a particular change

Restraining forces
Factors pressuring against a change

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MANAGING RESISTANCE TO CHANGE

Overcoming resistance to change
Force Field Analysis (Kurt Lewin) a method involving analysing the two types of forces, driving forces and restraining forces, that influence any proposed change, then assessing how best to overcome resistance. Driving forces
Factors pressuring for a particular change

C H A N G E

Restraining forces
Factors pressuring against a change

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MANAGING RESISTANCE TO CHANGE

Forces for change Good union relations Foreign competition Recent losses Cheaper outside sources Union desire to save jobs Company reluctance to save jobs Forces against change Failing union relations Stringent work rules Current benefit costs Current pay costs Absenteeism levels Company desire for flexibility in layoff decisions

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MANAGING CONFLICT
Conflict is the perceived difference between two or more parties resulting in mutual opposition.
Between individuals & organisation
Causes of conflict

Benefits and losses from conflict

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MANAGING CONFLICT
Conflict between individuals and organisations:
Organisation efficiency is built on task

specialisation, unity of command, formalisation. This often requires workers to be passive, dependent & subordinate. Individuals may have little control over work and machines may seem to take over control.
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MANAGING CONFLICT
Conflict between individuals and organisations (cont.):
This conflicts with the needs & expectations

of maturing people.
Therefore, many job structures conflict with

a healthy personalitys basic growth needs.

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MANAGING CONFLICT
Conflict between individuals and organisations:
Very mature employees
Highly structured organisations Fragmented and mechanised jobs

Conflict is strongest with

Formalised rules and procedures

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MANAGING CONFLICT
Choices facing employees in conflict:
Leave organisation or seek promotion
Use defence mechanisms Psychologically disassociate Concentrate on material rewards Find allies & resist

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MANAGING CONFLICT
Conflict between individuals/organisations:

Conflict occurs: Employees must choose to

Leave

Defend
Disassociate

Find distraction
Form alliances
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MANAGING CONFLICT
Causes of conflict:
Communication factors Structural factors

Size
Participation Linestaff distinctions

Reward systems
Resource interdependence Task interdependence Power

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MANAGING CONFLICT
Causes of conflict (cont.):
Personal behaviour factors Communication styles

Workforce diversity
Differences in goals Reward structures

Differences in perceptions
Increased demand for specialists

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MANAGING CONFLICT
Benefits & losses from conflict:
BENEFITS
Productive task focus Cohesion & satisfaction Power & feedback Goal attainment

LOSSES
Energy diversion Distorted judgment Loser effects Poor coordination

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MANAGING CONFLICT
Benefits & losses from conflict
Benefits Losses

Productive task focus Cohesion & satisfaction Power & feedback Goal attainment

Energy diversion Distorted judgment Loser effects Poor coordination

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MANAGING CONFLICT
Reducing/resolving conflict:
Change situational factors Appeal to superordinate goals Interpersonal conflict-handling techniques Avoidance Accommodation Competition Compromise Collaboration

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MANAGING CONFLICT
Managing intergroup conflict through change: Problem solving Expansion of resources Smoothing Bureaucratic authority Limited communication Confrontation & negotiation Intergroup training

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MANAGING CONFLICT
Managing intergroup conflict
Problem solving
Intergroup training Expansion of resources
Intergroup conflict resolution

Confrontation & negotiation

Smoothing

Limited communication

Bureaucratic authority
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RELATIONSHIP BETWEEN CHANGE & CONFLICT

Types of intergroup conflict Functional Dysfunctional Changing views on conflict Traditional viewconflict is destructive & unnecessary Modern viewconflict is inevitable, & may produce better organisational performance Stimulating conflict Build group diversity, communicate to provoke change, encourage competition
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LECTURE SUMMARY
Managing change

Diagnosing need Change cycle

Managing resistance to change

Introducing change Resistance to change Managing resistance

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LECTURE SUMMARY
Managing conflict

Individual-organisational conflict Causes

Relationship between conflict &

change

Types of intergroup conflict Changing views on conflict Stimulating conflict

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