Chapter 18 Managing Organizational Change

Management: A Skills Approach, 2/e

by Phillip L. Hunsaker
Copyright 2005 Prentice-Hall

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Learning Objectives
Appreciate the Necessity of Managing Change Recognize What Causes Change Identify Targets for Change Plan and Implement Change Recognize and Overcome Resistance to Change Lead the Planned Change Process
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Why is it Important to Adapt to Change?

Individuals, teams, or organizations that do not adapt to change in timely ways are unlikely to survive.

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Adapting to Change
Individuals, teams and organizations that recognize the inevitability of change, learn to adapt to it, and attempt to manage it, will be the most successful.
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What is Change?
Coping process of moving from a unsatisfactory present state to a desired state

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Reacting to Change
Unplanned Fire fighting

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Planned Change
Results from deliberate attempts by managers to improve organizational operations

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Unfreeze

Change

Three Phases of Planned Change

Refreeze
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Unfreezing
Help people accept that change is needed because the existing situation is not adequate

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Changing
Involves rearranging of current work norms and relationships to meet new needs

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Refreezing
Reinforces the changes made so that the new ways of behaving become stabilized

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Managing the Planned Change Process

Improving the organizations ability to cope with unplanned changes that are thrust upon it Modifying employees attitudes and behaviors to make them more effective contributors to the organizations goals

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Steps in the Planned Change Process

Recognize the need for change Diagnose and plan change Manage the transition Measure results Maintain change
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Initiating the Planned Change Process

Recognize the need for change Diagnose and plan change Formulate Goals Determine stakeholders needs Examine driving and restraining forces

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Force-Field Analysis
Process of analyzing the forces that drive change and the forces that restrain it

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Driving Forces
Factors that push toward the new, more desirable status quo

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Restraining Forces
Factors that exert pressure to continue past behaviors or to resist new actions

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Force-Field Analysis Model

Restraining Forces

QuasiStationary Equilibrium

Driving Forces
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Managing the Planned Change Process

Consider contingencies to determine the best interventions Manage the transition Measure results Maintain change

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Targets for Organizational Change

Strategy Develop new visions, missions, strategic plans Structure Add a new department or division, or consolidate two existing ones People Replace a person or change knowledge, skills, attitudes, or behaviors Technology upgrade a data processing system Management Encourage participation by those involved in solution of problems 18-20
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Reasons for Resistance to Change

Selective Perception Lack of Information Fear of the Unknown Habit Resentment Toward the Initiator Sub-Optimization Structural Stability

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Overcoming Resistance to Change

Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation and Co-optation Coercion Promote Positive Attitudes Toward Change

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Leading Organizational Change

Establish a Sense of Urgency Form a Powerful Guiding Coalition Develop a Compelling Vision and Strategy Communicate Widely Empower Others to Act on the Vision Generate Short-term Wins Consolidate Gains and Create Greater Change Institutionalize Changes in the Organizational Culture
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