Topic 14 - Organizational Change

Topic 14:
Organizational Change
18-1
Copyright 2015 Pearson Education Ltd.
Learning Objectives
After studying this chapter, you should be able
to:
Identify forces for organizational change
Describe managing planned change
Identify individual and organizational sources of
resistance to change
Discuss strategies to overcome change
resistance
Explain several approaches to managing a
change process
Explain ways of creating a culture for change
18-2
LO 1
Forces for Change

Forces
Forces
for
for Change
Change
Social
SocialTrend
Trend
Politics
Politics
Technology
Technology
Nature
Natureof
of
Workforces
Workforces
Economics
Economics

Copyright 2015 Pearson Education, Inc.
Competition
Competition
193
LO 1
Force for Change
18-4
LO 2
Managing Planned
Change
Change
Making things different.
Goals
Goalsof
ofPlanned
Planned
Change:
Change:
Improving
Improvingthe
theability
abilityofof
Planned Change
the
organization
totoadapt
the
organization
adapt
Activities that are
totochanges
ininits
changes
its
intentional and goal
environment.
environment.
oriented.
Changing
Changingthe
thebehavior
behaviorofof
Change Agents
individuals
and
groups
inin
individuals
and
groups
Persons who act as
the
organization.
the
organization.
catalysts and assume the
responsibility for managing
change activities.
Copyright 2015 Pearson Education, Inc.
LO 3
Sources
of Individual Resistance
to Change
18-6
LO 3
Sources
of Organizational Resistance
to Change
18-7
LO 3Sources
of Individual and
Organizational Resistance to
Change
18-8
LO 4
Overcoming
Resistance
to Change
Overcoming Resistance to Change

1. Education and communication
2. Participation
3. Building support and commitment
4. Develop positive relationships
5. Implementing changes fairly
6. Manipulation and cooptation
7. Selecting people who accept change
8. Coercion
18-9
Managing Organizational
Change
LO 5
Approaches to managing change:

1. Lewins Three-Step Model (Exhibit 183)
2. Kotters Eight-Step Plan for
Implementing Change (Exhibit 18-5)
3. Action Research
4. Organizational Development
18-10
LO 5
Managing Organizational
Change Lewin Three-Step
Model
Unfreezing
Refreezing
Change efforts to overcome

Stabilizing a change
the pressures of both
intervention by balancing
individual resistance and group
driving and restraining
conformity.
forces.
Movement
A change process that
transforms the organization
from the status quo to a
desired end state.
- Driving Forces
- Restraining Forces
Forces that hinder
movement from the
existing equilibrium.
Forces that direct behavior

away from the status
quo.
Copyright
2015 Pearson Education, Inc.
Managing
Organizational
LO 5
Change
Lewin Three-Step Model
18-12
Managing
Organizational
LO 5
Change
Lewin Three-Step Model
18-13
Managing
Organizational
LO 5
Change
Kotter Eight-Step Model
18-14
Managing
Organizational
LO 5
Change
Action
Research
Action Research
is a change process based on the systematic

collection of data and selection of a change action
based on what the analyzed data indicate.
The process consists of five steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research provides at least two specific benefits:
It is problem focused.
It reduces resistance to change.
18-15
Managing
Organizational
LO 5
Change
Organizational Development
is a collection of change methods that try
to improve organizational effectiveness
and employee well-being.
OD methods value human and
organizational growth, collaborative and
participative processes, and a spirit of
inquiry.
Focuses on how individuals make sense
of their work environment.
18-16
Managing
Organizational
LO 5
Change
The underlying values in most OD efforts

are:
Respect for people.
Trust and support.
Power equalization.
Confrontation.
Participation.
18-17
Creating a Culture for

Change
Stimulating a Culture of Innovation
LO 6
Innovation, a more specialized kind of change, is a

new idea applied to initiating or improving a product,
process, or services.
Sources of Innovation:
Structural variables are the most studied potential
source of innovation.
Organic structures positively influence innovation.
Long tenure in management is associated with
innovation.
Innovation is nurtured when there are slack
resources.
Inter-unit communication is high in innovative
organizations.
18-18
LO 6
Creating a Culture for

Change
18-19
Implications for Managers

Consider that, as a manager, you are a
change agent in your organization. The
decisions you make and your rolemodeling behaviors will help shape the
organizations change culture.
Your management policies and practices
will determine the degree to which the
organization learns and adapts to
changing environmental factors.
18-20

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Topic 14:

Forces for Change

Copyright 2015 Pearson Education Ltd.

Force for Change

Overcoming Resistance to Change

Approaches to managing change:

Change efforts to overcome

Forces that direct behavior

is a change process based on the systematic

The underlying values in most OD efforts

Creating a Culture for

Innovation, a more specialized kind of change, is a

Creating a Culture for

Implications for Managers

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