BMGT340 Chapter 17: Organizational Change PDF

School of Business Department of Management & International Management BMGT340 – Organizational Behavior Chapter 17 Organizational Change  Fall 2024-2025 BMGT340 - CHAPTER 17...

School of Business Department of Management & International Management BMGT340 – Organizational Behavior Chapter 17 Organizational Change  Fall 2024-2025 BMGT340 - CHAPTER 17 Learning Objectives Objective 17.1: Change Objective 17.2: Resistance to change  Objective 17.3: Approaches to managing organizational change 2 BMGT340 - CHAPTER 17 Objective17.1 Change ❖ Forces for Change ❖ Reactionary versus Planned Change  3 BMGT340 - CHAPTER 17 Dimensions for Change: Objective17 ❖ Forces for Change Six.1 Change (cont’d) o The changing nature of the workforce. o Technology. o Economic shocks. o Competition. o Social trends. o Globalization. 4 BMGT340 - CHAPTER 17 Objective17.1  Change (cont’d) ❖ Reactionary versus Planned Change Change: is simply making things different. Planned Change: Change activities that are intentional and goal oriented. o What are the goals of planned change? 1. Improve the ability of the organization to adapt to changes in its environment. 2. Change employee behavior. o Who is responsible for managing change activities in organizations? Change Agents: People who act as catalysts and assume the responsibility for managing change activities. Change agents can be managers or non-managers, current or new employees, or outside consultants. 5 BMGT340 - CHAPTER 17 Objective17.2  Resistance to Change o Even when employees are shown data that suggest they need to change, they latch onto whatever information they can find that suggest they are okay and don’t need to change. o Resistance to change doesn’t just come from lower levels of the organization. In many cases, higher-level managers will resist changes proposed by subordinates, especially if these leaders are focused on immediate performance. o Resistance to change can be positive if it leads to open discussion and debate. 6 BMGT340 - CHAPTER 17 Objective17.2 Resistance to Change (cont’d) 7 BMGT340 - CHAPTER 17  Objective17.2 Resistance to Change (cont’d) ❖ Overcoming Resistance to Change Eight tactics can help change agents deal with resistance to change: o Communication o Participation: It’s difficult to resist a change decision in which we’ve participated. o Building Support and Commitment o Developing Positive Relationships: People are more willing to accept changes is they trust the managers implementing them. 8  BMGT340 - CHAPTER 17 Objective17.2 Resistance to Change (cont’d) ❖ Overcoming Resistance to Change Eight tactics can help change agents deal with resistance to change: o Implementing Changes Fairly o Manipulation and Cooptation: Manipulation refers to twisting facts. Cooptation combines manipulation and participation. o Selecting People Who Accept Change o Coercion: it is the application of direct threats or force on dissenters. It includes threatening employees with forced transfers, blocked promotions, negative performance evaluations, and poor letters of recommendation. 9  BMGT340 - CHAPTER 17 Objective17.3 Approaches to Managing Organizational Change Approaches to managing change: ❖ Lewin’s Three-Step Model ❖ Kotter’s Eight-Step Plan ❖ Action Research ❖ Organizational Development - OD 10  BMGT340 - CHAPTER 17 Objective17.3 Approaches to Managing Organizational Change (cont’d) ❖ Lewin’s Three-Step Model Successful change in organizations should follow three steps: unfreezing the status quo, movement to a desired end state, and refreezing the new change to make it permanent. Unfreezing must happen in Once the movement stage one of three ways: begins, it’s important to keep o Driving Forces the momentum going o Restraining Forces BMGT340 - CHAPTER 17 o Combine the first two When change has been  implemented, the new time situation must be refrozen 11 so it can be sustained over Objective17.3 Approaches to Managing Organizational Change (cont’d) ❖ Kotter’s Eight-Step Plan John Kotter built on Lewin’s three step model to create a more detailed approach for implementing change. Kotter began by listing common mistakes managers make when trying to initiate change. 12 BMGT340 - CHAPTER 17 Objective17.3 Approaches to Managing Organizational Change (cont’d) ❖ Action Research Action research: A change process based on the systematic collection of data and the selection of a change action based on what the analyzed data indicate. Action research consists of five steps:  o Diagnosis o Analysis o Feedback o Action o Evaluation 13 BMGT340 - CHAPTER 17 Objective17.3 Approaches to Managing Organizational Change (cont’d) ❖ Organizational Development (OD) Organizational Development (OD): A collection of planned change interventions, built on humanistic–democratic values, that seeks to improve organizational effectiveness and employee well-being. What are some OD techniques or interventions for bringing about change? o Sensitivity Training o Survey Feedback o Process Consultation o Team Building o Intergroup Development o Appreciative Inquiry 14 BMGT340 - CHAPTER 17 change: There are six dimensions to Brief Recap ❖ The changing nature of the workforce – Technology - Economic shocks – Competition - Social trends – Globalization Change: is simply making things different. Planned Change: Change activities that are intentional and goal oriented.  Change Agents: People who act as catalysts and assume the responsibility for managing change activities. There are eight tactics can help change agents deal with resistance to change: ❖ Communication – Participation - Building Support and Commitment - Developing Positive Relationships - Implementing Changes Fairly - Manipulation and Cooptation - Selecting People Who Accept Change – Coercion There are four approaches to managing Organizational Change: ❖ Lewin’s Three-Step Model - Kotter’s Eight-Step Plan - Action Research - Organizational Development (OD) BMGT340 - CHAPTER 17 15