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Organizational Change: Two Metaphors

Organizational Change: Two Metaphors. Calm Waters (Incremental) White Water Rapids (Radical). External : Customers Competitors Technology Economic Social Political International. Internal : Financial Problems Production Inefficiencies Employee Expectations/ Demands Management Goals.

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Organizational Change: Two Metaphors

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  1. Organizational Change:Two Metaphors • Calm Waters (Incremental) • White Water Rapids (Radical)

  2. External: Customers Competitors Technology Economic Social Political International Internal: Financial Problems Production Inefficiencies Employee Expectations/ Demands Management Goals Forces for Change

  3. Assess need for change Find source of problem Decide on the change Identify obstacles Implement Change Top-down or Bottom-up Evaluate Change Is it successful? Steps in the Organizational Change Process

  4. Types of Changes • Technology • Product/Service • Strategy/Structure • People/Culture (Usually, more than one change at a time)

  5. Technology Change • Generally, technology change is “bottom-up” • Facilitated by “Ambidextrous” approach • looser structure for innovation than for established activities

  6. Product/Service Change • Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing) • “Bottom-Up after Horizontal-Linkage” • Horizontal Linkage Model: • Specialized departments • Horizontal linkages • Boundary spanning

  7. Horizontal Linkage Model

  8. New-Venture Teams • Separate unit to develop and initiate innovations • Small, Organic • Relatively free from organizational bureaucracy • Most effective when placed high in the organizational structure

  9. Strategy/Structure Change • Mission, General Goals • Structural Design, Administrative Procedures, Management Systems • Usually “top-down”

  10. People and Culture Changes • TQM - Total Quality Management • OD - Organizational Development

  11. Organizational Development Use of behavioral science knowledge to promote people/culture changes such as: • Skill Development • Attitude Change • Teamwork

  12. OD Can Help Managers Address-- • Organizational decline • Conflict management • Mergers/Acquisitions

  13. Individual: Job Training Career Planning Coaching, Counseling Group: Sensitivity Training Role Playing Team-building The following can include large portions and even the Entire Organization: Survey-feedback Intergroup activities Process-consultation OD Techniques

  14. Why People Resist Change • Personal preference for sameness • Fear of the unknown • Climate of mistrust • Fear of failure • Loss of status and/or job security • Disruption of cultural traditions and/or group relationships

  15. Lewin’s Force Field Analysis: Decision to Engage in Exercise Forces for Change (Driving) Weight gain Minimally passing treadmill test Feel lethargic, having no energy Family history of cardiovascular disease New, physically demanding job Forces for Status Quo (Restraining) Lack of time No exercise facility at work Spouse/partner hates to exercise No interest in physical activity or sports Made a grade of D in a physical education class. Equilibrium

  16. Driving Forces of Change Restraining Forces against Change Historically good company-union relations Deteriorating company- union relations Foreign competition Stringent work rules Recent company losses Current benefit costs Cheaper sources available outside Current pay costs Union desire to save jobs Employee absenteeism levels Company desire for flexibility in layoff decisions Company reluctance to eliminate jobs Current High Cost Level Desired Lower Cost Level FORCE FIELD ANALYSIS

  17. Unfreezing Motivate Change (strengthen driving and/or weaken restraining forces) Change Use Effective Change Method Refreezing Solidify the Change Unfreezing Communication/Education Negotiation/Promise of Rewards Change Participation/Training/ Coercion Refreezing Reinforce with Resources/Rewards Lewin’s 3-Step Change Model

  18. Unfreezing- Creates the motivation to change- Encourages the replacement of old behaviors and attitudes with those desired by management- Entails devising ways to reduce barriers to change- Creates psychological safety •Changing- Provides new information, new behavioral models, or new ways of looking at things- Helps employees learn new concepts or points of view- Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change • Refreezing- Helps employees integrate the changed behavior or attitude into their normal way of doing things- Positive reinforcement is used to reinforce the desired change- Coaching and modeling help reinforce the stability of change Lewin’s Change Model

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