Chapter Sixteen

Change, Conflict, and Negotiation

Chapter Objectives
Identify and describe four types of organizational change according to the Nadler-Tushman model. Explain how people tend to respond differently to changes they like and those they dislike. List at least six reasons why employees resist changes and discuss what management can do about resistance to change. Describe how the unfreezing-change-refreezing metaphor applies to organization development (OD).
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Chapter Objectives (contd)

Describe tempered radicals and identify the 5Ps in the checklist for grassroots change agents. Contrast competitive and cooperative conflict styles. Identify and describe five conflict resolution techniques. Identify and describe the elements of effective negotiation and explain the advantage of added value negotiating (AVN).

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Change: Organizational Perspectives

Types of Organizational Change
Anticipatory changes: Planned changes based on expected situations Reactive changes: Changes made in response to unexpected situations Incremental changes: Subsystem adjustments required to keep the organization on course Strategic changes: Altering the overall shape or direction of the organization

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Figure 16.1: Four Types of Organizational Change

Source: Copyright 1990, by The Regents of the University of California. Reprinted from the CALIFORNIA MANAGEMENT REVIEW, Vol. 32, No. 2. By permission of The Regents. All rights reserved. This article is for personal viewing by individuals accessing this site. It is not to be copied, reproduced, or otherwise disseminated without written permission from the California Management Review. By viewing this document, you hereby agree to these terms. For permission or reprints, contact: cmr@haas.berkeley.edu.

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Change: Organizational Perspectives (contd)

Tuning
The most common, least intense, and least risky type of change Also known as preventive maintenance and kaizen (continuous improvement) Key is to actively anticipate and avoid problems rather than waiting for something to go wrong

Adaptation
Incremental changes that are in reaction to external problems, events, or pressures

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Change: Organizational Perspectives (contd)

Reorientation
Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected Also called frame bending (Nadler and Tushman)

Re-Creation
Intense, risky, and decisive change that reinvents the organization Also called frame breaking (Nadler and Tushman)

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Individual Reactions to Change

How People Respond to Changes They Like
Three-stage process
Unrealistic optimism Reality shock Constructive direction

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Figure 16.2: How People Tend to Respond to Changes They Like

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Individual Reactions to Change (contd)

How People Respond to Changes They Fear and Dislike
Stages
Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction

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Figure 16.3: How People Tend to Respond to Changes They Fear and Dislike

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Why Do Employees Resist Change?

Surprise
Unannounced significant changes threaten employees sense of balance in the workplace.

Inertia
Employees have a desire to maintain a safe, secure, and predictable status quo.

Misunderstanding/Ignorance/Lack of Skills
Without introductory or remedial training, change may be perceived negatively.

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Why Do Employees Resist Change? (contd)

Emotional Side Effects
Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.

Lack of Trust
Promises of improvement mean nothing if employees do not trust management.

Fear of Failure
Employees are intimidated by change and doubt their abilities to meet new challenges.
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Why Do Employees Resist Change? (contd)

Personality Conflicts
Managers who are disliked by their employees are poor conduits for change.

Poor Timing
Other events can conspire to create resentment about a particular change.

Lack of Tact
Not showing sensitivity to feelings can create resistance to change.

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Why Do Employees Resist Change? (contd)

Threat to Job Status/Security
Employees worry that change threatens their job or security.

Breakup of Work Group

Changes can tear apart established on-the-job social relationships.

Passive-Aggressive Organizational Culture

The more things change, the more they stay the same.

Competing Commitments
Change can disrupt employees in their pursuit of other goals.
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Overcoming Resistance to Change

Strategies for Overcoming Resistance to Change
Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion

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Making Change Happen

Two Approaches to Organizational Change
Organization Development (OD)
Formal top-down approach

Grassroots Change
An unofficial and informal bottom-up approach

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Organization Development (OD)

Planned change programs intended to help people and organizations function more effectively Applying behavioral science principles, methods, and theories to create and cope with change

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Objectives of OD
Deepen sense of organizational purpose. Strengthen interpersonal trust. Encourage problem solving rather than avoidance. Develop a satisfying work experience. Supplement formal authority with knowledge and skill-based authority. Increase personal responsibility for planning and implementing. Encourage willingness to change.
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The OD Process
Unfreezing, Change, Refreezing (Kurt Lewin)
Unfreezing: Neutralizing resistance by preparing people for change Change: Introduction of the intervention Refreezing: Systematically following a change program for lasting results

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Figure 16.4: A General Model of OD

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Unofficial and Informal Grassroots Change

Tempered Radicals
People who quietly try to change the dominant organizational culture in line with their convictions Guidelines for tempered radicals:
Think small for big results. Be authentic. Translate. Dont go it alone.

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Figure 16.5: The 5P Checklist for All Change Agents

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Managing Conflict
Conflict
One persons incompatible behaviors that make another persons actions less effective

Dealing with the Two Faces of Conflict

Competitive conflict: Parties pursuing directly opposite (win-lose) goals Cooperative conflict: A mutually reinforcing experience (win-win) that serves the best interests of both parties

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Figure 16.6: A Competitive Versus Cooperative Conflict

Source: Reprinted from LEARNING TO MANAGE CONFLICT: GETTING PEOPLE TO WORK TOGETHER PRODUCTIVELY by Dean Tjosvold. Copyright 1993 Dean Tjosvold. First published by Lexington Books. All rights reserved. All correspondence should be sent to Lexington Books, 4720 Boston Way, Lanham, MD 20706.

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Managing Conflict (contd)

Conflict Trigger
Any factor that increases the chances of conflict

Conflict Triggers
Ambiguous or overlapping jurisdictions Competition for scarce resources Communication breakdowns Time pressure Unreasonable standards, rules, policies, or procedures Personality clashes Status differentials Unrealized expectations
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Managing Conflict (contd)

Resolving Conflict
Doing nothing is usually not a viable option. Conflict Resolution Techniques
Problem solving Superordinate goals Compromise Forcing Smoothing

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Negotiating
Negotiation
A decision-making process among interdependent parties with different preferences

Common Types of Negotiation

Two-party negotiation (e.g., buyer and seller) Third party negotiation (e.g., agents and arbitrators)

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Negotiating (contd)
Elements of Negotiation
Adopting a win-win attitude
Understanding that a mutually beneficial agreement addresses both parties interests

Knowing your BATNA (best alternative to a negotiated agreement)

Your bottom line for accepting or rejecting offers

Identifying the bargaining zone

Negotiation is useless if both parties involved have no common ground on which to maneuver during bargaining.

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Figure 16.7: The Bargaining Zone for Negotiators

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Negotiating (contd)
Added Value Negotiating (AVN)
A practical five-step win-win process involving the development of multiple deals
Clarify subjective and objective interests; seek common ground. Identify options and their marketplace values. Design alternative deal packages that foster a creative agreement. Select a mutually acceptable deal that is feasible for both parties. Perfect the deal by hammering out unresolved details.

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Terms to Understand
Anticipatory changes Reactive changes Incremental changes Strategic changes Organization development (OD) Unfreezing Refreezing Tempered radicals Conflict Conflict trigger Negotiation Bargaining zone Added value negotiating

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