Organizational Behavior Chapter 16 - PDF

Organizational Behavior, 14e Chapter 16 Organization Change and Change M...

Organizational Behavior, 14e Chapter 16 Organization Change and Change Management Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1  Learning Outcomes After studying this chapter, you should be able to: 1. Summarize the dominant forces for change in organizations. 2. Describe the process of planned organization change. 3. Discuss several approaches to organization development. 4. Explain resistance to change. 5. Identify the keys to managing successful organization change and development. 6. Describe organizational learning. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2  16-1 Forces for Change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  Forces for Change Companies need to change appropriately to stay viable. The global environment is ever-changing. Four major forces affecting change: − People − Technology − Information processing and communication − Competition Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  Table 16.1 Pressures for Organization Change Category Examples Type of Pressure for Change People Generation X, Y, Millennials Demands for different training, benefits, Global labor supplies workplace arrangements, and compensation Senior citizens systems Workforce diversity Technology Manufacturing in space More education and training for workers at all Internet levels, more new products, products move Global design teams faster to market Information Computer, satellite communications Faster reaction times, immediate responses to Processing and Global sourcing questions, new products, different office Communication Videoconferencing arrangements, telecommuting, marketing, Social networking advertising, recruiting on social networking sites Competition Global markets Global competition, more competing products International trade agreements with more features and options, lower costs, Emerging nations higher quality Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  Discussion Activity 1 The textbook stated that social networking is probably the most radical aspect of change in communication. Do you agree? What are some of the advantages and disadvantages of social networking for businesses? Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  Discussion Activity 1 Debrief The textbook stated that social networking is probably the most radical aspect of change in communication. Do you agree? What are some of the advantages and disadvantages of social networking for businesses? Although social media can provide advantages such as affordability, immediate interaction with followers/customers, a source of marketing data and business leads, and greater business/brand awareness, it also has the downside risks of customer privacy vulnerability, potential widespread negative publicity, the necessity for constant attention, and rapidly changing trends. Every business has to make its own cost–benefit analysis. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  16-2 Processes for Planned Organization Change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Lewin’s Process Model Organizations should approach change as a multi-stage process: − Unfreezing – the process by which people become aware of the need for change − Change is the movement from the old to the new way of doing things − Refreezing – the process of making new behaviors relatively permanent and resistant to further change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  Figure 16.1 Lewin’s Process Model of Organization Change In Lewin’s three-step model, change is a systematic process of transition from an old way of doing things to a new way. Inclusion of an “unfreezing” stage indicates the importance of preparing for the change. The “refreezing” stage reflects the importance of following up on the change to make it permanent. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10  The Continuous Change Process Model Incorporates the forces for change, a problem-solving process, a change agent, and transition management − Takes a top management perspective that perceives the need for change, then generates and selects alternatives Change agent – a person responsible for managing a change effort Transition management – the process of systematically planning, organizing, and implementing change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  Figure 16.2 Continuous Change Process Model of Organization Change The continuous change process model incorporates the forces for change, a problem-solving process, a change agent, and transition management. It takes a top-management perspective and highlights the fact that in organizations today, change is a continuous process. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Knowledge Check 16.1 In what order do the stages of Lewin’s model for change take place? a. Recognize, measure, implement b. Unfreeze, change, refreeze c. Old state, new state, steady state d. Measure, define, remeasure Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13  16-3 Organization Development Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  Organization Development Defined Organization development (OD) – a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization’s effectiveness Structural change – a system-wide organizational development involving a major restructuring of the organization or instituting programs such as quality of work life − Rearrangement of task division, authority, and reporting relationships − Reengineering and rethinking are two contemporary approaches − Affects performance appraisals and rewards, decision making, communication, and information-processing systems Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  Figure 16.3 Walton’s Categorization of Quality-of-Work-Life Programs Quality-of-work-life programs can be categorized into eight types. The expected benefits of these programs are increased employee morale, productivity, and organizational effectiveness. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  Polling Activity 1 Quality-of-work-life programs, defined as the degree to which members of a work organization are able to satisfy important personal needs through their experiences in the organization, are another approach to system-wide change. Which of the following categories of programs do you feel has the greatest value for a post-COVID workplace? a. Adequate and fair compensation b. Development of human capacities c. Growth and security d. Social integration Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  Task and Technological Change Task redesign − The direct alteration in tasks involved in doing the work, the technology, or both Technological change − Changing how inputs are transformed into outputs An integrated framework reflects the complexities of the interfaces between individual jobs and the total organization. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Table 16.2 Integrated Framework for Implementation of Task Redesign in Organizations Step 1: Recognition of a need for a change Step 4: Cost–benefit analysis of Step 2: Selection of task redesign as a proposed changes potential intervention Step 5: Go/no-go decision Step 3: Diagnosis of the work system and Step 6: Formulation of the strategy for context redesign Diagnosis of existing jobs Step 7: Implementation of the task Diagnosis of existing workforce changes Diagnosis of technology Step 8: Implementation of any Diagnosis of organization design supplemental changes Diagnosis of leader behavior Step 9: Evaluation of the task redesign Diagnosis of group and social processes effort Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  Group and Individual Change People-oriented change techniques: Training − Improves employees’ job skills Management development − Fosters certain skills, abilities, and perspectives Team building − Used when interaction among group members is critical for success Survey feedback Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Figure 16.4 The Survey Feedback Process The survey feedback process has three distinct stages, which must be fully completed for the process to be most effective. As an organization development process, its purpose is to fully involve all employees in data analysis, problem identification, and development of solutions. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  16-4 Resistance to Change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Resistance to Change The resistance-to-change paradox − Organizations invite change when change offers competitive advantage. − Organizations resist change when change threatens the organization’s structure and control systems. − Organizations must balance stability (permanence) with the need to react to external shifts (change). − Resistance can warn of the need to reexamine the need for change. There are organizational and individual sources of resistance to change. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23  Table 16.3 Organizational and Individual Sources of Resistance (1 of 2) Organizational Sources Examples Overdetermination Employment system, job descriptions, evaluation and reward system, organization culture Narrow focus of change Structure changed with no concern given to other issues (e.g., jobs, people) Group inertia Group norms Threatened expertise People move out of area of expertise Threatened power Decentralized decision making Resource allocation Increased use of part-time help Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24  Table 16.3 Organizational and Individual Sources of Resistance (2 of 2) Individual Sources Examples Habit Altered tasks Security Altered tasks or reporting relationships Economic factors Changed pay and benefits Fear of the unknown New job, new boss Lack of awareness Isolated groups not heeding notices Social factors Group norms Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25  Polling Activity 2 Individual sources of resistance to change are rooted in basic human characteristics such as needs and perceptions. Which of these general reasons for individual resistance to change do you believe is most prevalent and/or strongest? a. Habit b. Security c. Economic factors d. Fear of the unknown e. Social factors Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26  16-5 Managing Successful Organization Change and Development Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27  Table 16.4 Keys to Managing Successful Organization Change and Development Key Impact Consider global issues Keeps in touch with the latest global developments and how change is handled in different cultures Take a holistic view of the Helps anticipate the effects of change on the social system and organization culture Start small Works out details and shows the benefits of the change to those who might resist Secure top management Gets dominant coalition on the side of change: safeguards support structural change, heads off problems of power and control Encourage participation by Minimizes transition problems of control, resistance, and task those affected by the change redefinition Foster open communication Minimizes transition problems of resistance and information and control systems Reward those who contribute Minimizes transition problems of resistance and control systems to change Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28  Discussion Activity 2 Suppose you are a manager in either (a) a high-tech company that must develop the next generation of your product, or (b) a small business that manufactures specialty notebooks and diaries and will be incorporating new product and sales software. How might you use the keys to successful change presented in Table 16.4 to manage such a change? In which scenario would your task be easier? Why? Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29  Discussion Activity 2 Debrief Suppose you are a manager in either (a) a high-tech company that must develop the next generation of your product, or (b) a small business that manufactures specialty notebooks and diaries and will be incorporating new product and sales software. How might you use the keys to successful change presented in Table 16.4 to manage such a change? In which scenario would your task be easier? Why? These keys are generally applicable to either scenario. In some ways, companies that are accustomed to rapid technology change might handle the change smoothly. In other ways, a low-tech change is sometimes easier. Think about how to include those affected in the change as much as possible and how you might encourage greater communication during the process. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30  16-6 Organizational Learning Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31  Organizational Learning Learning organization – organization that facilitates the learning of all its members and continuously transforms itself − Continual learning and change are part of the culture. − Learning must happen during a project and after the project ends. − After-action reviews encourage continual learning:  What was supposed to happen?  What actually happened?  Why were there differences?  What did we learn? Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32  Knowledge Check 16.2 If you, as a manager, want to facilitate organizational learning, which of the following steps would you most want to make sure happens? a. Make sure your employees follow the unfreeze-change-refreeze process. b. Have employees make reports about what they know of the before- change and after-change processes. c. Punish failures through lower performance evaluations, lower bonuses, or even terminations. d. Conduct a group after-action review of both successes and failures that occurred. Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33  Self-Assessment What sorts of resistance to change have you encountered in organizations? In yourself? Could you define yourself as a human “learning organization”? If so, what actions do you take to facilitate learning and transformation? If not, what might you do to better facilitate learning and transformation? Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34  Summary Click the link to review the learning outcomes for this presentation. Link to Learning Outcomes Griffin/Phillips, Organizational Behavior, 14th Edition. © 2024 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35