Pressures for OrganizationaI Change

ntroduction or
Removal of
Government
Regulations
Life-cycle Forces
Growing
nternational
nterdependence
Changes in
Demographics
Shifting Political
Dynamics
Changes in
Societal Values
Technological
Advances
Aspirations
Pressure for
Change
nternaI Pressures for
OrganizationaI Change
Aspiration-performance discrepancies
When an individual, workgroup, division, or
organization is not meeting its own expectations,
changes in tactics, strategies, and processes often
follow
mportant factors in the role of aspirations
Past aspirations
Past performance
Comparison with others
nternaI Pressures for
OrganizationaI Change: Life-CycIe Forces
Formalization and
Control Stage
Focus on efficiency in
operations
Formal processes and
rules
Strict division of labor
ncrease in professional
managers
ncrease in number of
formal departments
ncrease in number of
levels in the hierarchy
Elaboration Stage
Balance
Focus on efficiency and
innovation
Formal procedures exist
alongside empowered
lower-level managers
and associates
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nternaI Pressures for
OrganizationaI Change: Life-CycIe Forces
Entrepreneurial Stage
Focus on
product/service ideas
Acquisition of financial
capital
nitial entrance into
exploitable niche
nformal real-time
decision making
nformal coordination
Collectivity Stage
Continue focus on
product/service
development
Continued acquisition of
financial capital
A family feeling as vision is
pursued
Strong commitment among
growing pool of managers
and associates
Long hours often for low pay
nformal coordination but
more consistency than
before
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ternaI Pressures for Change
Technological advances
Can lead to incremental or radical changes in how services
and products are designed, produced, and delivered
Technology that is inconsistent with existing culture may cause
resistance to change among managers and associates
ntroduction and removal of government regulations
Firms in deregulated industries typically must adapt to a more
competitive environment
Firms that prosper in a regulated environment may fail in one
that is deregulated
ternaI Pressures for Change
Changes in societal values
Changing values influence consumer purchases
Society's values are evidenced in employee attitudes,
behaviors, and expectations
Society's values are represented in government regulations
Shifting political dynamics
Changes in demographics
May cause alteration of internal practices to ensure fair
treatment for people of all races and ages
Growing international interdependence
PIanned Change
Planned change
A three-phase process involving deliberate efforts to
move an organization or a unit from its current
undesirable state to a new, more desirable state
Unfreezing
Moving
Refreezing
Process of PIanned Change
Adapted Irom Exhibit 14-3: Process oI Planned Change
Provide
rationale
for change
Create minor
levels of
guilt/anxiety
about not
changing
Unfreezing
Create sense of
psychological
safety concerning
change
Tactics for unfreezing include:
1. Reminding individuals that they
have successfully changed in
the past
2. Communicating to individuals
that managers and associates
in other organizations in similar
circumstances have
successfully changed
3. Letting individuals know that
support and training will be
available for the specific
changes to be made
Process of PIanned Change
mplement
new
evaluation
systems
mplement new
hiring and
promotion
systems
Create minor
levels of
guilt/anxiety
about not
changing
Refreezing
Adapted Irom Exhibit 14-3: Process oI Planned Change
Provide
information
that suspects
proposed
changes
Bring about
actual shifts
in behavior
Moving
25ortant TacticaI Choices
Speed of change
Criteria for deciding speed of change
Urgency
Degree of support
Amount and complexity of change
Competitive environment
Knowledge and skills available
Financial and other resources
Style of change
Participatory
Non-participatory
#esistance to Change
Resistance to change is typically due to four factors
Lack of understanding
Communicate clearly what the change entails
Different assessments
nclude potential or actual resisters in the decision-making
process
Self-interest
Reason with resistors, transfer or coerce them
Low tolerance for change
Offer or assure support for the resistors during the learning
process
The DADA syndro2e
DADA syndrome
A sequence of stagesdenial, anger,
depression, and acceptancethrough which
individuals can move or in which they can
become trapped when faced with unwanted
change
Organization DeveIo52ent (OD)
A planned, organization-wide, continuous
process designed to improve communication,
problem solving, and learning through the
application of behavioral science knowledge
Grounded in values of individual empowerment
and interpersonal cooperation
Fully consistent with the high-involvement
management approach
asic Organization DeveIo52ent ModeI
Adapted Irom Exhibit 14-4: Basic Organization Development Model
Diagnosis of
Situation
ntroduction of
interventions
Progress
Monitoring
Diagnostic devices for managers include
interviews, surveys, group sociometric
devices, process-oriented diagnosis,
and accurate records (for example,
performance records)
Organization development interventions
include t-group training, team building,
and job redesign
Surveys, and other techniques, may be
reused to determine what progress has
been made toward solving the problem
The main criterion for evaluation is
whether the original objective has been
accomplished
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Organization DeveIo52ent
nterventions
Organization Development
Structural Techniques Relationship Techniques
T-group Training
Team Building
Survey Feedback
Job Redesign
Management by Objectives
Supplemental
Organizational Processes
Adapted Irom Exhibit 14-5: Organization Development Interventions
#eIationshi5 Techniques
Team building
A process in which members of a team work together and with
a facilitator to diagnose task, process, and interpersonal
problems within the team and create solutions
Team building tips
1. Get the right people together for
2. a large block of uninterrupted time
3. to work on high-priority problems or opportunities that
4. they have identified and have them work
5. in ways that are structured to enhance the likelihood of
6. realistic solutions and action plans, which are then
7. implemented enthusiastically and
8. followed up to assess actual versus expected results
#eIationshi5 Techniques
T-group training
Group exercises in which individuals focus on their actions,
how others perceive their actions, and how others generally
react to them; participants often learn about unintended
negative consequences of certain types of behavior
Survey feedback
Data obtained from questionnaires; managers receive the data
for their units and are expected to hold unit meetings to
discuss problems
$tructuraI Techniques
Job redesign
Enlargement or enrichment of jobs; enrichment is the better
method to enhance motivation for effective problem solving,
communication, and learning
Management by objectives (MBO)
A management process in which individuals negotiate task
objectives with their managers and then are held accountable
for attainment of the objectives
Supplemental organizational processes
Processes in which associates and/or managers have ongoing
meetings for the purpose of identifying and solving important
problems