Managing Change

Module 10
LIS 580: Spring 2006
Instructor- Michael Crandall
April 27, 2006 LIS580- Spring 2006 2
Roadmap
The context
What is organizational change?
Processes for managing change
People and change
Organizational Development
Conflict resolution
Fostering innovation
April 27, 2006 LIS580- Spring 2006 3
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
peoples attitudes, assumptions and behaviors
Brings both organizational design and human
resources lessons to bear
Ghoshal and Bartlett provide a high-level model for
change, lets look at some of the details and lessons
learned at a more granular level
April 27, 2006 LIS580- Spring 2006 4
What is Organizational Change?
An alteration of an organizations
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 LIS580- Spring 2006 5
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?
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 6
Forces for Change















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
April 27, 2006 LIS580- Spring 2006 7
Three Categories of Change
Organizational Culture
Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 8
Model for Planned Organizational
Change
FIGURE 81 Source: Adapted from Larry Short, Planned Organizational Change, MSU Business Topics, Autumn 1973,
pp. 5361 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 9
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

Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 10
Change in Calm Waters
Kurt Lewins 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
Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 11
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

Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 12
Is a New Structure Really Required?
FIGURE 82
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
doesnt work, youll have to
make fundamental changes or
even reject the design. Heres a
step-by-step process for
resolving problems.
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 13
Is a New Structure Really
Required? (contd)
FIGURE 82b
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
April 27, 2006 LIS580- Spring 2006 14
A Nine-step Process For Leading
Organizational Change
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
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 15
Why People Resist Change
Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 16
FIGURE 83
How Immune Is the Person to
Change?
Source: Robert Kegan and Lisa Lahey, The Real Reason People
Wont Change, Harvard Business Review, November 2001, p. 89. G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 17
G.Dessler, 2003
Dealing with Change
April 27, 2006 LIS580- Spring 2006 18
FIGURE 85
Barriers to Empowerment
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
April 27, 2006 LIS580- Spring 2006 19
Organizational Development
Organizational Development (OD)
An approach to organizational change in
which the employees themselves
formulate the change thats required and
implement it,
usually with the
aid of a trained
consultant.

G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 20
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.
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 21
OD Interventions (contd)
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.
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 22
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 23
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.
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 24
Strategic Applications of OD
Strategic Intervention
An OD application aimed at effecting a suitable fit
among a firms strategy, structure, culture, and
external environments.
Integrated Strategic Management
An OD program to create or change a companys
strategy by:
Analyzing the current strategy
Choosing a desired strategy
Designing a strategic change plan
Implementing the new plan.
G.Dessler, 2003
April 27, 2006 LIS580- Spring 2006 25
Organizational Stressors:
Role Demands
Role 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

Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 26
FIGURE 87
Conflict Handling Styles
Source: 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
April 27, 2006 LIS580- Spring 2006 27
G.Dessler, 2003
Conflict Resolution Modes
April 27, 2006 LIS580- Spring 2006 28
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

Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 29
Structural Variables Affecting
Innovation
Organic 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
Prentice Hall, 2002
April 27, 2006 LIS580- Spring 2006 30
Next Week
Leading Mondays topic is motivation
Read Chapters 10 and 11 and the assigned
articles
Discussion group-- think about the following
questions:
Does NASA have clear and consistent
leadership?
What are some of the problems with the
leadership structure?
How do you think this affects the motivation of the
engineers and managers?
Does this have impact on safety & performance?
What could be done to improve the situation?