Change Management Chapter 6 PDF

Change Management Ch. 6 BOH4M  Do you Explain why or why not… like change? Select: yes/no 2 Study Question 2: What is the nature of organizational change? Change leader: – Someone who actively takes charge and guides ot...

Change Management Ch. 6 BOH4M  Do you Explain why or why not… like change? Select: yes/no 2 Study Question 2: What is the nature of organizational change? Change leader: – Someone who actively takes charge and guides others in making changes to their behaviour or the way a group/organization operates 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 – Planned and wide-ranging change that starts at the highest levels of an organization – Purpose is to significantly improve entire organization and its ability to perform better – Driven by the organization’s top leadership – Success depends on support of middle-level and lower-level workers – Example: corporate merger, where leaders from acquiring company dictate new policies that must be followed 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; also increases their commitment to the change – Example: employee suggestion programs Management Fundamentals: Chapter 18 8 Directions of Change Integrated change – Successful and enduring change combines advantages of top-down and bottom-up approaches – Example: organizational restructuring where management and employees collaborate to redesign roles and workflows 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? Explain why. (generall y) 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 Force-coercion strategy of change. – Example: Remote work policies ending after COVID- 19 – Employees often informed of new policy with little notice – Employees may have had concerns, but decision was made by leadership without consulting workers – Employees who did not comply with new policy could face disciplinary actions Management Fundamentals: Chapter 18 20 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 21 Three Strategies of Change Rational persuasion strategy of change. – Example: Company implements new customer relationship management (CRM) system in sales – Management presents data showing how CRM system has led to increased sales in similar companies – Management explains specific benefits system will bring – Management offers training sessions and ongoing support – Management establishes feedback mechanism so employees can share experiences and suggestions Management Fundamentals: Chapter 18 22 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 23 Three Strategies of Change Shared power strategy of change. – Example: company aims to develop and implement a new wellness program for employees – Organization creates wellness committee that includes employees from various departments and roles – Organization conducts surveys and focus groups to understand employee’s needs – Wellness committee collaborates with management to design programs Management Fundamentals: Chapter 18 24 Figure 18.4 Alternative change strategies and their leadership implications. Management Fundamentals: Chapter 18 25 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 26  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 27  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 28