LN, Change Management - Day 1.pptx

Change Management Ch. 6 BOH4M Do you like change? Explain why or why not… Select: yes/no 2 Study Question 2: What is the nature of organizational change? ➢Change leader. – A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or soc...

Change Management Ch. 6 BOH4M Do you like change? Explain why or why not… Select: yes/no 2 Study Question 2: What is the nature of organizational change? ➢Change leader. – A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or social system. ➢Change leadership is: – Forward-looking – Proactive – Deals with problems before they happen – Embraces new ideas Management Fundamentals: Chapter 18 3 Figure 18.2 Change leaders versus status quo managers. Management Fundamentals: Chapter 18 4 Brainstorm ● Individually, think of a person who: – a) is a change leader (insert answer_____) – b) is forward looking, proactive, and embraces new ideas (insert answer ______) Justify both A and B…. (here) Management 8/e - Chapter 18 5 Directions of Change 1. Top-down 2. Bottom-up 3. Integrated Management 8/e - Chapter 18 6 Directions of Change ➢Top-down change – Strategic and comprehensive change that is initiated with the goals of comprehensive impact on the organization and its performance capabilities. – Driven by the organization’s top leadership. – Success depends on support of middle-level and lower-level workers. Management Fundamentals: Chapter 18 7 Directions of Change ➢Bottom-up change – The initiatives for change come from any and all parts of the organization, not just top management. – Crucial for organizational innovation. – Employees are more empowered and involved in the process of change. – This also increases their commitment to the change. Management Fundamentals: Chapter 18 8 Directions of Change ➢Integrated change – Successful and enduring change combines advantages of top-down and bottom-up approaches. Management Fundamentals: Chapter 18 9 Extent (Degree) of Change Transformational change ⎯ major and comprehensive redirection. E.g., a radical new direction to the organization – New line of products, new philosophy, new geographic focus, etc. Incremental change ⎯ adjusting existing systems and practices. E.g., new office design, new structure of forms, new schedules, etc. 10 ➢How to lead transformational change: – – – – – Establish a sense of urgency for change. Form a powerful coalition to lead the change. Create and communicate a change vision. Empower others to move change forward. Celebrate short-term “wins” and recognize those who help. – Build on success; align people and systems with new ways. – Stay with it; keep the message consistent; champion the vision. Management Fundamentals: Chapter 18 11 would be most effective? (generall y) Explain why. Top-down Bottom-up Integrated 12 Brainstorm… (on the next slide) ● What forces do you believe are causing organizations to CHANGE today? ● Make a list of at least 6. ● Discuss how these forces have led to change. Management Fundamentals: Chapter 18 13 What Causes Change? ➢ External forces for change: – – – – – – – Globalization. Market competition. Local economic conditions. Government laws and regulations. Technological developments. Market trends. Social forces and values. ➢ Internal forces for change: – Arise when change in one part of the system creates the need for change in another part of the system. • May be in response to one or more external forces. Management Fundamentals: Chapter 18 14 Planning of Changes ➢ You can have either of: – Unplanned change. • Response to unanticipated events. • Good leaders act on opportunities for reactive change. – Planned change • Aligning the organization with anticipated future challenges. • Activated by proactive leaders who are sensitive to performance gaps. Management Fundamentals: Chapter 18 15 ➢Phases of planned change – Unfreezing • The phase in which a situation is prepared for change and needs for change are developed. – Changing • The phase in which something new takes place in the system, and change is actually implemented. – Refreezing • The phase of stabilizing the change and creating the conditions for its long-term continuity. Management Fundamentals: Chapter 18 16 Figure 18.3 Lewin’s three phases of planned organizational change. Management 8/e - Chapter 18 17 Three Strategies of Change 1. Force-coercion 2. Rational persuasion 3. Shared power Management 8/e - Chapter 18 18 Three Strategies of Change ➢ Force-coercion strategy of change. – Direct forcing and political maneuvering. – Uses power bases of legitimacy, rewards, and punishments to induce change. – Produces limited and temporary results. – Most useful in the unfreezing phase. Management Fundamentals: Chapter 18 19 Three Strategies of Change ➢ Rational persuasion strategy of change. – Bringing about change through persuasion backed by special knowledge, empirical data, and rational argument. – Relies on expert power. – Relies on belief that reason guides people’s decisions and actions. – Useful in the unfreezing and refreezing phases. – Produces longer-lasting and internalized change. Management Fundamentals: Chapter 18 20 Three Strategies of Change ➢ Shared power strategy of change. – Engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge. – Time consuming but likely to yield high commitment. – Involves others in examining sociocultural factors related to the issue at hand. – Relies on strong interpersonal skills in team situations. – Relies on belief that people respond to sociocultural norms and expectations of others. Management Fundamentals: Chapter 18 21 Figure 18.4 Alternative change strategies and their leadership implications. Management Fundamentals: Chapter 18 22 Discuss: Which Strategy to Use? (SELECT) ● Research has indicated that your organization should change its name. Strategy:_____________ ● You discover that there is a high amount of employee theft at your retail store. Strategy:________________ ● Employees are unhappy with your policy regarding paid vacation scheduling. You need to develop a new policy in order to improve morale. Strategy:________________ Management Fundamentals: Chapter 18 23 ➢Reasons for people resisting change: – – – – – – – – Fear of the unknown Disrupted habits Loss of confidence Loss of control Poor timing Work overload Loss of face Lack of purpose Management Fundamentals: Chapter 18 24 ➢Methods for dealing with resistance to change: – – – – – – Education and communication Participation and involvement Facilitation and support Facilitation and agreement Manipulation (hahaha) Explicit and implicit coercion 25 GROUP WORK! - Present Each table group can choose a topic to present on. Refer to the instructions in the assignment in the Google Classroom. 26