MGMT2010 Topic 11 Organizational Change PDF

MGMT2010 Topic 11 Organizational Change  Course Learning Objectives (CLO) CLO4: Diagnose the impact of leadership style on decision making and managing change in the organizations. OB Facts and Trivia People aren’t opposed to change...

MGMT2010 Topic 11 Organizational Change  Course Learning Objectives (CLO) CLO4: Diagnose the impact of leadership style on decision making and managing change in the organizations. OB Facts and Trivia People aren’t opposed to change – they are opposed to change they didn’t think of! Forces of Change in an Organization Change Organizational Change Planned Change Change resulting from a deliberate decision to alter the organization E.g. Change from traditional manufacturing to more automation and less people Unplanned Change Change that is imposed on the organization and is often unforeseen E.g. Recession in the economy  Change Can Affect… Technology Products or Services Administration and Management People or Human Resources Change Models They aim to provide a guide to making changes, navigating the transformation process, and ensuring that changes are accepted and put into practice. Effective Change uses a Model Kurt Lewin’s Force Field Analysis Model Popular change model. There are 2 forces in the change process. Driving Forces Restraining Forces Push organizations toward Resistance to change (blocks change the change) External forces Employee behaviors that block Internal forces (e.g. a leader’s the change process vision) They try to maintain status quo  Example of Change Driving Forces Restraining Forces CHANGE: Upgrade company Cost of Information wide technology available quickly Accuracy of information Staff unsure and gathering afraid of information automation Employees more processes Complicated to productive from manual implement to automatic 9 Lewin’s Force Field Analysis Model: Example Some people may find it hard to start exercise for losing weight because they don't want to change their current lifestyle. What are some reasons (Driving Forces) why you would try to lose weight? What are some reasons (Restraining Forces) that could prevent you from trying to lose weight? Example: Change = I want to lose weight, therefore go from 150lbs to 140lbs, a change of 10lbs Driving Forces Restraining Forces Dislike weight gain Lack of time Minimally passing No exercise facility at treadmill test work Feel lethargic; have Spouse/partner hates no energy to exercise Family history of No interest in physical Equilibrium cardiovascular activity or sports disease Made a grade of D in New, physically physical education demanding job class Lewin’s Force Field Analysis Model Applying Lewin’s model According to Lewin’s force field analysis model, effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the situation, so it stays here. Lewin’s Three-Step Change Model How to Remember the Steps Lewin’s Three-Step Change Model  Humans like the idea of change But resistance to change is a common and natural human response Why do we resist change? Now we need to understand the forces of resistance so we can minimize them when going through the change process. Why Employees Resist Change Negative Losing something of value or satisfaction (status, position, power) due to change valence Not-invented Oppose change that originated elsewhere here Fear of the Risk of personal loss – example: knowledge and skills may no longer be needed unknown Concern about being unable to adjust  Cost of moving away from our “comfort Breaking zones” routines Requires time/effort to learn new routines Incongruent Changes will be against team norms or team dynamics will be forced to change team norms Incongruent Workplace practices need to be aligned with the change – such as career organizational development, rewards, communication systems systems What Makes Someone Resist Change?  https://www.needpix.com/photo/784568/activity-pen-icon-training-education-school-exercise-practice-test For this activity, you need a pen and paper. ▪ Sign your name 10 times on a piece of paper. ▪ Do it again. ▪ Once done, put the pen in your other hand and do ten signatures. ▪ Repeat. ▪ Was it hard to sign your name using the opposite hand? What challeges did you face? ▪ Sign the signature again 10 times. ▪ Did you switch back? Why? The instructions didn’t change.  https://www.needpix.com/photo/784568/activity-pen-icon-training-education-school-exercise-practice-test The point of this exercise is to demonstrate how difficult change can be, and most people will revert to what they know unless they are making a concerted effort to implement change. Strategies - Minimizing Resistance to Change Communication Highest priority and first strategy for change Should be consistent and Learning continuous communication Such as town hall meetings, individual meetings Involvement Make a compelling case for why change is good Stress Mgt Generates urgency to change Negotiation Reduces uncertainty Problems – time consuming and costly Coercion Strategies - Minimizing Resistance to Change Provides new knowledge/skills Communication Includes coaching and other forms of learning Learning Helps break old routines and adopt Involvement new roles Increases employee readiness for Stress Mgt change Negotiation Coercion Problems – potentially time consuming, costly, needs to consider different learning styles Strategies - Minimizing Resistance to Change Communication Employees participate in change process Learning Change needs employee commitment Employee ideas may improve the Involvement change process Stress Mgt Helps reduce fear of unknown Better decision-making opportunity Negotiation Coercion Problems – time-consuming, potential conflict Strategies - Minimizing Resistance to Change Change is often stressful Communication Use stress management practices When communication, learning, and involvement are Learning not enough to minimize stress Potential benefits Involvement More motivation to change Less fear of unknown Stress Mgt Fewer direct costs Problems – time-consuming, expensive, doesn’t help Negotiation everyone Coercion Strategies - Minimizing Resistance to Change Negotiate about changes taking place Communication and how it will affect them Give up something for something else in return Learning May be necessary when people clearly lose something and won’t otherwise Involvement support change Good for when company needs change Stress Mgt quickly Negotiation Problems – expensive, time-consuming, may not come to an agreement, gains Coercion compliance (not commitment) Strategies - Minimizing Resistance to Change Communication When all else fails Learning Force them to change (Assertive Influence) Involvement Either agree and align with changes or leave organization Stress Mgt Negotiation Problems – reduces trust, makes Coercion employees unhappy and resentful, can be costly  Understanding Resistance to Change Examples of resistance Complaints, absenteeism, passive noncompliance View resistance as task conflict Employee lacks readiness for change View resistance as a form of voice Turns resistance into constructive conversations Encourages better decisions through involvement Increases commitment to change Making Change Fun https://youtu.be/RveeQafbdA0 Driving Forces Create a sense of urgency This is usually due to competitors, changing consumer trends, government regulations, and other external factors This may be due to the opportunities in the future that the company wants to stay ahead This may include the vision  Refreezing the New Change Often change won’t last. We tend to go back to previous behaviours and practices, unless systems and structures hold (refreeze) the desired changes. “Even when we want to change, and do change, we tend to relax and the rubber band snaps us back into our comfort zones.” (Ray Davis, CEO, Umpqua Bank) Refreezing the New Change Unfreezing and changing behaviour won't produce lasting change Refreezing realigns organizational systems and team dynamics so they support the desired changes Alter rewards to reinforce new behaviours Change career paths Revise information systems - E.g. feedback mechanisms like weekly reports What gets measured, gets done - Measure progress and use benchmarks for check-ins towards change  Putting it all together Determine what needs to change Ensure there is strong leadership UNFREEZ Create the need/urgency for change E Manage & understand the doubts and concerns Communicate often Dispel Rumors Empower action CHANGE Involve people in the process Anchor the changes into the culture Develop strategies to sustain the change such as rewards and performance evaluations REFREEZ Provide support & training E Celebrate success