Read Organizational Change text version

Managing Change

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Outline

Forces of Change

·External Forces ·Internal Forces

Models of Planned Change

·Lewin's Change Model ·A Systems Model of Change ·Kotter's Eight Steps for Leading Organizational Change ·Organizational Development

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Outline (continued)

Understanding and Managing Resistance to Change

·Why People Resist Change in the Workplace ·Alternative Strategies for Overcoming Resistance to Change

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Forces of Change

External Forces: originate outside the Forces

organization.

·

Demographic Characteristics

- the workforce is more diverse - there is a business imperative to effectively manage diversity - organizations are increasingly using technology as a means to improve productivity and market competitiveness - the emergence of a global economy is forcing companies to be more competitive and to do business differently - organizations are forging new partnerships and alliances aimed at creating new products and services

·

Technological Advancements Market Changes

·

- society and its legislative bodies can put pressure on organizations to change the way they do business ­ the tobacco industry M. En good example is a C. Eduardo Bustos Farías Comportamiento

organizacional

·

Social and Political Pressures

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Forces of Change (continued)

Internal Forces: originate inside the organization. Forces

·

Human Resource Problems/Prospects

- employees' needs, job satisfaction, organizational commitment, behavior, and performance are forces of change - dissatisfied employees and high levels of absenteeism and turnover are signs that change is needed - the level of conflict between managers and their direct reports is a force for change - inappropriate leader behavior may result in employee problems requiring change - inequitable reward systems are an additional force for change

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·

Managerial Behavior/Decisions

Comportamiento organizacional

A Generic Typology of Organizational Change

Adaptive Change Reintroducing a familiar practice Innovative Change Introducing a practice new to the organization Radically Innovative Change Introducing a practice new to the industry High Degree of complexity, cost, and uncertainty Potential for resistance to change

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Low

- 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

·Unfreezing

Lewin's Change Model

· 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 Comportamiento M. En C. Eduardo Bustos Farías

organizacional

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A Systems Model of Change

Target Elements of Change

Inputs

Internal * Strengths * Weaknesses External * Opportunities * Threats

Organizing Arrangements

Outputs

* Organizational Level * Department/ group level * Individual level

Strategy

Goals

People

Social Factors

Methods

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Kotter's Steps for Leading Organizational Change

Step

Establish a sense of urgency Create the guiding coalition Develop a vision and strategy Communicate the change vision Empower broadbased action

Description Unfreeze the organization by creating a compelling reason for why change is needed. Create a cross-functional, cross-level group of people with enough power to lead the change. Create a vision and strategic plan to guide the change process. Create and implement a communication strategy that consistently communicates the new vision and strategic plan. Eliminate barriers to change, and use target elements of change to transform the organization. Encourage risk taking and creative problem-solving.

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Comportamiento organizacional

Kotter's Steps for Leading Organizational Change (continued)

Step

Generate shortterm wins Consolidate gains and produce more change

Anchor new approaches in the culture

Description Plan for and create short-term "wins" or improvements. Recognize and reward people who contribute to the wins. The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Reinforce the changes by highlighting connections between new behaviors and processes and organizational success. Develop methods to ensure leadership development and successes.

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Organizational Development

Organizational Development a set of

techniques or tools that are used to implement organizational change

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Characteristics of Organization Development (OD)

· · · ·

OD involves profound change OD is value loaded OD is a diagnosis/prescription cycle OD is process-oriented

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Resistance To Change

Resistance to Change: an emotional/behavioral response

to real or imagined work change.

The leading reasons why people resist change are:

· · · · ·

An individual's predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Resistance to Change (cont)

Leading Reasons Why People Resist Change (cont):

·Peer pressure ·Disruption of cultural traditions and/or group relationships ·Personality conflicts ·Lack of tact and/or poor timing ·Nonreinforcing reward systems

For Class Discussion: What do you think are

the top three reasons people resist change?

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M. En C. Eduardo Bustos Farías

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Assessing an Organization's Readiness for Change

· Why is readiness for change an important consideration? · What survey questions resulted in the lowest readiness for change? Why did this occur? · What can managers do to prepare an organization for change?

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Strategies for Overcoming Resistance to Change

Approach Education + Communication Where there is a lack of information or inaccurate information and analysis Once persuaded, people will often help with the implementation of the change Participation + Involvement Where the initiators do not have all the information they need to design the change and where others have considerable power to resist People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan Can be very time consuming if participators design an inappropriate change

Commonly Used in Situations

Advantages

Drawbacks

Can be very time consuming if lots of people are involved

Strategies for Overcoming Resistance to Change (continued)

Approach Facilitation + Support Negotiation + Agreement

Commonly Used in Situations

Where someone or some group Where people are resisting because of adjustment problems will clearly lose out in a change and where that group has considerable power to resist No other approach works as well Sometimes it is a relatively easy with adjustment problems way to avoid major resistance

Advantages

Drawbacks

Can be time consuming, expensive, and still fail

Can be too expensive in many cases if alerts others to negotiate for compliance

Strategies for Overcoming Resistance to Change (continued)

Approach Manipulation + Co-optation Where other tactics will not work or are too expensive Explicit + Implicit Coercion Where speed is essential and where the change initiators possess considerable power It is speedy and can overcome any kind of resistance

Commonly Used in Situations

Advantages

It can be a relatively quick and inexpensive solution to resistance problems

Drawbacks

Can lead to future problems if people feel manipulated

Can be risky if it leaves people mad at the initiators

Managing Planned Change

Change Making things different. Planned Change Activities that are intentional and goal oriented. Change Agents Persons who act as catalysts and assume the responsibility for managing change activities.

Comportamiento organizacional

Goals of Planned Goals of Planned Change: Change: Improving the ability of Improving the ability of the organization to the organization to adapt to changes in its adapt to changes in its environment. environment. Changing the behavior Changing the behavior of individuals and of individuals and groups in the groups in the organization. organization.

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Resistance to Change

Forms of Resistance to Change Overt and immediate Voicing complaints, engaging in job actions Implicit and deferred

­ Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

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Overcoming Resistance to Change

Tactics for dealing with Tactics for dealing with resistance to change: resistance to change: ·· Education and communication Education and communication ·· Participation Participation ·· Facilitation and support Facilitation and support ·· Negotiation Negotiation ·· Manipulation and cooptation Manipulation and cooptation

Comportamiento organizacional

·· Coercion C. Eduardo Bustos Farías M. En Coercion

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The Politics of Change

Impetus for change is likely to come from outside change agents. Internal change agents are most threatened by their loss of status in the organization. Long-time power holders tend to implement only incremental change. The outcomes of power struggles in the organization will determine the speed and quality of change.

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Lewin's Three-Step Change Model

Unfreezing

Change efforts to overcome the pressures of both individual resistance and group conformity.

Refreezing

Stabilizing a change intervention by balancing driving and restraining forces.

Driving Forces

Forces that direct behavior away from the status quo.

Restraining Forces

Forces that hinder movement from the existing equilibrium.

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Action Research

Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.

Process Steps: Process Steps:

1. Diagnosis 1. Diagnosis 2. Analysis 2. Analysis 3. Feedback 3. Feedback 4. Action 4. Action 5. Evaluation 5. Evaluation

Comportamiento organizacional

Action research benefits: Action research benefits: Problem-focused rather Problem-focused rather than solution-centered. than solution-centered. Heavy employee Heavy employee involvement reduces involvement reduces resistance to change. resistance to change.

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M. En C. Eduardo Bustos Farías

Organizational Development

Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being. OD Values: OD Values:

1. Respect for people 1. Respect for people 2. Trust and support 2. Trust and support 3. Power equalization 3. Power equalization 4. Confrontation 4. Confrontation 5. Participation 5. Participation

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Organizational Development Techniques

Sensitivity Training Training groups (T-groups) that seek to change behavior through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, improves listening skills, greater openess, and increased tolerance for others.

Comportamiento organizacional

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Organizational Development Techniques (cont'd)

Survey Feedback Approach The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested. Process Consultation (PC) A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.

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Organizational Development Techniques (cont'd)

Team Building High interaction among team members to increase trust and openness.

Team Building Activities: Team Building Activities: · · Goal and priority setting. Goal and priority setting. · · Developing interpersonal relations. Developing interpersonal relations. · · Role analysis to each member's role and Role analysis to each member's role and responsibilities. responsibilities. · · Team process analysis. Team process analysis.

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Organizational Development Techniques (cont'd)

Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.

Intergroup Problem Solving: Intergroup Problem Solving: · · Groups independently develop lists of perceptions. Groups independently develop lists of perceptions. · · Share and discuss lists. Share and discuss lists. · · Look for causes of misperceptions. Look for causes of misperceptions. · · Work to develop integrative solutions. Work to develop integrative solutions.

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Organizational Development Techniques (cont'd)

Appreciative Inquiry Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.

Appreciative Inquiry (AI): Appreciative Inquiry (AI): · · Discovery: recalling the strengths of the organization. Discovery: recalling the strengths of the organization. · · Dreaming: speculation on the future of the Dreaming: speculation on the future of the organization. organization. · · Design: finding aacommon vision. Design: finding common vision. · · Destiny: deciding how to fulfill the dream. Destiny: deciding how to fulfill the dream.

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Contemporary Change Issues For Today's Managers

How are changes in technology affecting the work lives of employees? What can managers do to help their organizations become more innovative? How do managers create organizations that continually learn and adapt? Is managing change culture-bound?

Comportamiento organizacional

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Technology in the Workplace

Continuous Improvement Processes

­ Good isn't good enough. ­ Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services.

Lowers costs and raises quality. Increases customer satisfaction.

­ Organizational impact

Additional stress on employees to constantly excel. Requires constant change in organization.

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Technology in the Workplace

Process Reengineering

­ "Starting all over" ­ Rethinking and redesigning organizational processes to produce more uniform products and services.

Identifying the organization's distinctive competencies-- what it does best. Assessing core processes that add value to the organization's distinctive competencies. Reorganizing horizontally by process using cross-functional and self-managed teams.

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Contemporary Change Issues for Today's Managers: Stimulating Innovation Innovation A new idea applied to initiating or improving a product, process, or service.

Sources of Innovation: Sources of Innovation: · · Structural variables Structural variables · · Organic structures Organic structures · · Long-tenured management Long-tenured management · · Slack resources Slack resources · · Interunit communication Interunit communication · · Organization's culture Organization's culture · · Human resources Human resources

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M. En C. Eduardo Bustos Farías

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Contemporary Change Issues for Today's Managers: Stimulating Innovation (cont'd) Idea Champions Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.

Comportamiento organizacional

M. En C. Eduardo Bustos Farías

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Mastering Change: It's Culture-Bound

Questions for culture-bound organizations: Questions for culture-bound organizations:

1. Do people believe change is even possible? 1. Do people believe change is even possible? 2. How long will it take to bring about change in the 2. How long will it take to bring about change in the organization? organization? 3. Is resistance to change greater in this organization due 3. Is resistance to change greater in this organization due to the culture of the society in which it operates? to the culture of the society in which it operates? 4. How will the societal culture affect efforts to implement 4. How will the societal culture affect efforts to implement change? change? 5. How will idea champions in this organization go about 5. How will idea champions in this organization go about gathering support for innovation efforts? gathering support for innovation efforts?

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Organizational Change

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