Chapter 15 Organizational Change PDF

Chapter 15 Organizational Change  Today 1. Grading / administrative 2. Final Exam details 3. Chapter 15 4. Activity 4 (3%) ▪ Small group culture activity 5. ©McGraw-Hill Education.  FINAL EXA...

Chapter 15 Organizational Change  Today 1. Grading / administrative 2. Final Exam details 3. Chapter 15 4. Activity 4 (3%) ▪ Small group culture activity 5. ©McGraw-Hill Education.  FINAL EXAM DETAILS ©McGraw-Hill Education.  Final Exam (25%) At regular class time, August 13 IN CLASS, closed book / closed notes 2 hours Advise if any established accommodation will be used Chapters 7, 10, 11, 12, 14, 15 (no direct questions from first half, but good to have general knowledge of core subjects if referenced in a question) 60 MCQ / 60 points Bring pencils, erasers, sharpeners All bags, cell phones, etc to front of class ©McGraw-Hill Education.  Today’s Learning Objectives 1. Describe the elements of Lewin’s force field analysis model. 2. Discuss the reasons why people resist organizational change. 3. Outline six strategies for minimizing resistance to change. 4. Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change. 5. Describe and compare action research, appreciative inquiry, large group interventions, and parallel learning structures as formal approaches to organizational change. 6. Discuss two cross-cultural and three ethical issues in organizational change. ©McGraw-Hill Education. “I’ve always believed that when the rate of change inside an institution becomes slower than the rate of change outside, the end is in sight. The only question is when.” Former CEO of General Electric, Jack Welch 6 Force Field Analysis Model Driving forces  Push organizations toward change Restraining Forces  External forces or leader’s vision Restraining forces  Resistance to change – employee Driving behaviours that block the change Forces process 7 Forces for/against Change  Push organizations toward change or resist it  External forces: customers, competition, government, society, economy, technology, etc  Internal forces: President, executives, shareholders, employees/different departments etc. 8 Force Field Analysis Model Desired Restraining Conditions Forces Restraining Forces Driving Forces Restraining Forces Driving Forces Current Driving Conditions Forces Before During After Change Change Change FREEZE UNFREEZE 9 REFREEZE Change Scenario – Humber In response to pandemic insights and student feedback, Humber will migrate to a hybrid education system recommended by the province. Classes will be offered as either fully on-campus, fully remote and/or hybrid, where every second class is remote. Remote classes will be synchronous. Not all courses will have all 3 options. Student tuition will be impacted as costs per course will be higher depending on how many on-campus classes are involved. You are the head of the Student Union. 10 Restraining Forces (Resistance to Change) Many forms of resistance  Complaints, absenteeism, passive noncompliance  Often subtle, not overt Resistance is natural: “faced with the choice of changing one’s mind and proving there is no need to do so, almost everyone gets busy with the proof.” 11 Why People Resist Change 1.Negative valence of change  Negative cost-benefit analysis 2.Fear of the unknown  People assume worst when future unknown  Perceive lack of control 3.Not-invented-here-syndrome  Staff oppose the change to prove their ideas were better  Protect Self-esteem 12 Why People Resist Change 4.Breaking routines  Cost of moving away from our “comfort zones”  Time/effort to learn new routines 5.Incongruent team dynamics  Norms contrary to desired change 6.Incongruent organizational systems, processes  Systems/structures reinforce status quo  rewards, information systems, patterns of authority 13  Unfreezing, Changing, Refreezing Force field model: unfreeze the current situation, move to a desired condition, refreeze the system so it remains in this desired state. Three strategies for unfreezing: Increase driving forces. Weaken/remove restraining forces. Increase driving forces AND reduce restraining forces (preferred strategy). ©McGraw-Hill Education. Driving Change: Urgency Inform employees about driving forces Most difficult when organization is doing well Customer-driven change  Human element energizes employees May need to create urgency to change without external drivers  Requires persuasive influence  Use positive vision rather than threats 15  Creating an Urgency for Change at Slack A few years ago, when Slack didn’t have any serious competitors, Canadian co- founder Stewart Butterfield generated an urgency for change. “It’s up to me to instil the message that we have a year, maybe 18 months, before we really have to lock horns with anyone,” said Butterfield. ©McGraw-Hill Education. Slack Technologies, Inc Change Scenario – Humber In response to pandemic insights and student feedback, Humber will migrate to a hybrid education system. Classes will be offered as either fully on-campus, fully remote and/or hybrid, where every second class is remote. Remote classes will be synchronous. Not all courses will have all 3 options. Student tuition will be impacted as costs per course will be higher depending on how many on-campus classes are involved. You are the head of the Student Union. 17 Reducing the Restraining Forces 1. Communication  Highest priority and first strategy for change  Generates urgency to change  Reduces uncertainty (fear of unknown)  Problems: time consuming and costly 2. Learning  Provides new knowledge/skills  Includes coaching and other forms of learning  Helps break old routines and adopt new roles  Problems: potentially time consuming, ineffective 18 Reducing the Restraining Forces 3. Involvement  Employees participate in change process  Reduces not-invented-here and fear of unknown  Includes task forces, advocates/champions  Problems: time-consuming, potential conflict 4. Stress management  When previous strategies do not minimize stress enough  Potential benefits More motivation to change Less fear of unknown  Problems: potentially ineffective 19 Reducing the Restraining Forces 5. Negotiation  Quickly influence by exchange -- reduces direct costs  Problems: expensive, gains compliance, not commitment 6. Coercion  When all else fails, issues are time-sensitive  Assertive influence  Radical form of “unlearning”  Problems Reduces trust, long term antagonism May create more subtle resistance 20 Change Agents Change agent – possesses knowledge and power to guide and facilitate the change effort Requires transformational leadership abilities Not all leaders can do this 21 22  Notes for end of Course Exam marks will be posted after grades released by Dean’s office You can calculate your final mark on exam based on grade to date Keep in touch! But, do not message me asking for opportunities to raise your grade Includes any assignments/activities that were missed Grades are final – only way to boost your grade is re- take the course Put your best foot forward! ©McGraw-Hill Education.  Ways to Stay in Touch ©McGraw-Hill Education.  Activity 4 (3%) 1. Culture: ‘Employee’ Socialization 2. Based on Chapter 14 3. Groups of 3…ish ©McGraw-Hill Education.