Managing Change: Chapter Scan
Managing Change: Chapter Scan
Managing Change: Chapter Scan
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MANAGING CHANGE
CHAPTER SCAN
Organizations have to keep pace with the current issues related to quality, technology,
diversity, globalization, and ethics. This requires managing change and also managing
resistance to change. All organizations face forces for change that are internal and external to
the organization There is a host of organization development interventions available to
managers. Diagnosis and needs analysis are essential first steps in any change management
effort.
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1. Identify the major external and internal forces for change in organizations.
2. Define the terms incremental change, strategic change, transformational change, and
change agent.
3. Describe the major reasons individuals resist change, and discuss methods organizations
can use to manage resistance.
4. Apply force field analysis to a problem.
5. Explain Lewin's organizational change model.
6. Describe the use of organizational diagnosis and needs analysis as a first step in
organizational development.
7. Discuss the major organization development interventions.
8. Identify the ethical issues that must be considered in organization development efforts.
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KEY TERMS
The following key terms are introduced in Chapter 16.
planned change
unplanned change
incremental change
strategic change
transformational change
change agent
disengagement
disidentification
disenchantment
disorientation
unfreezing
moving
refreezing
organization development (OD)
survey feedback
management by objectives (MBO)
quality program
team building
process consultation
skills training
sensitivity training
management development
role negotiation
job redesign
The forces for change are everywhere in the organization. Tom Peters has said that if an
organization does not make drastic changes every three or four years, it will not survive.
Adaptiveness, flexibility, and responsiveness are terms used to describe the organizations that
will succeed in meeting the competitive challenges that businesses face. Planned change
results from deliberate decisions to alter an organization. Unplanned change is imposed on
the organization and is often unforeseen.
A.
External Forces
The four themes of this text are the major drivers of change in organizations.
Although we anticipate changes, we are still lagging behind in acting on the changes.
Two examples of planned change are the European Community and the North
American Free Trade Agreement. Regardless of the degree of planning involved in
these ventures, there are numerous unplanned circumstances surrounding the events.
1.
Globalization
Workforce Diversity
The work force is aging, and there will be tremendous diversity in the
workforce in the next century. One avenues for contribution has been made
available to the disabled, with the passing of the Americans with Disabilities
Act in 1990. This act aids employment for disabled individuals by requiring
that employers make "reasonable accommodations" for their entry into the
position.
3.
Technological Change
Many changes will alter the way in which we think about work and the way we
interact with others in organizations. Tools like executive support systems
have been developed. The value of these tools lies in the ability to share
external information, in a concise, useful fashion with all organizational
members. Many of the technological changes will require a surrendering of
power and control.
4.
Internal Forces
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III.
CHANGE IS INEVITABLE
A.
Change may take one of three forms. Incremental change is relatively small in scope,
and as such, makes small improvements. Strategic change is a larger scale approach
that is similar in magnitude to a restructuring effort. Transformational change
moves the organization in a radically different, and sometimes, unknown, future state.
B.
The change agent's role can be exciting, innovative, and difficult, since these
individuals introduce and manage change in an organization. Organizations using
change agents external to the organization may have advantages with openness and
trust in organizational members. However, internal change agents may have greater
access to a breadth and depth of information.
IV.
Resistance to Change
Individuals often resist change because they feel their freedom is threatened.
1.
Fear of Loss
Fear of Failure
Many individuals are comfortable with entry level skills with computers, but
realize that the skills are dated within a short time frame. This fear of failure
might also be termed fear of keeping up.
4.
Personality Conflicts
Conflict can occur because of the seemingly insensitive personality of the change
agent.
Politics
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The Lewin change model was a theory long before it was fashionable to apply the
model to technology. Behavior is the product of two opposing forces, one force
pushes toward preserving the status quo, while the other pushes for change. Before a
change can be implemented, the organization requires a necessary step of unfreezing.
This involves encouraging individuals to discard old behaviors by shaking up the
equilibrium state. The second step in the change process is the moving stage which
involves new attitudes, values, and behaviors substituted for old ones. One of the
neglected stages of the change model in organizations is the refreezing step. This step
is necessary to establish new attitudes, values, and behaviors to become the new status
quo.
V.
Organizational development includes diagnosis before any steps are taken for
implementation. The diagnosis process can be divided into purpose, structure, reward
system, support system, relationships, and leadership. Not all organizations will
benefit from OD. The best prospects for success are organizations with organic
structures and Theory Y assumptions.
B.
Survey Feedback
Management by Objectives
Team Building
Among the newer techniques for managing change are larger group
interventions; these are intended to create a critical mass of people within an
organization to support a change.
6.
Process Consultation
Individual-Focused Techniques
1.
Skills Training
Skills training is the attempt to increase job knowledge, skills, and abilities
that are necessary to do a job effectively. The Ford Glass Plant in Tulsa,
Oklahoma has hired public school teachers to be on site for classes related to
literacy and mathematics.
2.
Sensitivity Training
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Role Negotiation
Role negotiation is a simple technique whereby individuals meet and clarify their
psychological contract.
5.
Job Redesign
Job redesign is an OD intervention method that alters jobs to improve the fit
between individual skills and the demands of the job. Students may enjoy an
impromptu job redesign for positions like toll booth operators, computer input
operators, or traffic directors. They quickly discover that the task is not as
easy as it appears.
6.
Career Planning
The benefits of career planning to the organization are that the workforce is
more confident and assured of their abilities. In addition, areas have been
identified that need improvement, in a less threatening manner than the typical
performance appraisal.
VI.
OD consultants must be careful not to direct their value system toward the organization.
There should not be pressure on individuals to participate, and confidentiality is of the utmost
concern. Organizational interventions must not be used to gain information about a problem
for control. OD consultant cannot work for both the organizational members and the
overriding control group. In order to facilitate change, conflict is encouraged, but must be
handled carefully, by trained, concerned professionals.
VII.
IX.
LOOKING BACK: Technology Keeps the American Red Cross Running Smoothly
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CHAPTER SUMMARY
Organizations face many pressures to change. Some forces are external, including
globalization, workforce diversity, technological innovation, and ethics. Other forces are
internal, such as declining effectiveness, crises, changing employee expectations, and a
changing work climate.
Organizations face both planned and unplanned change. Change can be of an incremental,
strategic, or transformational nature. The individual who directs the change, known as a
change agent, can be internal or external to the organization.
Individuals resist change for many reasons, and many of these reasons are rooted in fear.
Organizations can help manage resistance by educating workers and openly
communicating the change, encouraging worker participation in the change efforts, and
providing empathy and support to those who have difficulty dealing with change.
Reactions to change may be manifested in behaviors reflecting disengagement,
disidentification, disenchantment, and disorientation. Managers can use separate
interventions targeted toward each reaction.
Force field analysis states that when the forces for change are balanced by the forces
restraining change, an equilibrium state exists. For change to occur, the forces for change
must increase, or the restraining forces must decrease.
Lewin's change model proposes three stages of change: unfreezing, moving, and
refreezing.
A thorough diagnosis and needs analysis is a critical first step in any organization
development (OD) intervention.
OD interventions targeted toward organizations and groups include survey feedback,
management by objectives, product and service quality programs, team building, and
process consultation.
OD interventions that focus on individuals include skills training, sensitivity training,
management development training, role negotiation, job redesign, stress management
programs, and career planning.
OD efforts should be managed ethically and should preserve individual freedom of choice and
privacy.
When properly conducted, organization development can have positive effects on
performance.
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The term change agent comes from Rosabeth Moss Kanter and refers to individuals or groups
who undertake the task of introducing and managing change in organizations. Individuals outside
the organization may be consultants and organizational development experts. In contrast, an
insider could be the change agent.
4. What are the major reasons individuals resist change? How can organizations deal with
resistance?
Change is difficult for all participants, even for those that advocate the change. Some change is
resisted because of the necessity of surrendering power bases that have been developed over time.
Many individuals are fearful they will not be able to fulfill expectations of the new role.
5. Name the four behavioral reactions to change. Describe the behavioral signs of each reaction
and identify an organizational strategy for dealing with each reaction.
Disengagement is the psychological withdrawal from change and can be seen with withdrawal.
Managers should confront the disengaged employee and draw him or her out. Disidentification is
typified by behavior that is exhibited with sadness or worry. Encourage these employees to
explore their feelings and to transfer their positive feelings into the new situation.
Disenchantment behavior is evident in anger. The anger of these employees must be neutralized.
Disorientation can be understood when the individual is confused. Managers should explain the
change to disoriented individuals in a way that reduces the ambiguity of the situation.
6. Describe force field analysis and its relationship to Lewin's change model.
This process categorizes events in terms of forces that pushes for the status quo, versus those that
pull for change. For change to take place the pull factors must outweigh the push factors. Lewin's
change model parallels the unfreezing aspect to the analysis of push factors, and refreezing to the
pull factors of change.
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3. Review Challenge 16.1 What can you learn from this Challenge about how individuals'
tolerance for ambiguity can lead to resistance?
Students own experiences of dealing with change will be instructive here. They might also
consider others they have observed dealing with change and make some assumptions about the
relationship between those individuals tolerance for ambiguity and their resistance to change.
4. Can organizations prevent resistance to change? If so, how?
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There are many techniques, including the utilization of professionals (OD specialists) to assist in
change. Communication is an essential aspect to aid employees to adjust effectively. Research
substantiates the need for participation from those that will be involved in the change. Emotional
support is also considered critical for acceptance of change. It is probably unrealistic to think that
all resistance to change can be prevented.
5. What organization development techniques are the easiest to implement? What techniques are
the most difficult to implement? Why?
Survey feedback is non-threatening and allows for anonymity. There is little investment on the
employees' time. Management by Objectives on the other hand is a high investment technique
that requires training in the technique, and is a long process to discover change. Quality programs
are certainly in vogue, yet a number of companies have been disappointed at the time involved and
the disappointment of the employees as to the slowness of change.
6. Suppose your organization experiences a dramatic increase in turnover. How would you
diagnose the underlying problem?
Students could mention any of the techniques that have been listed for organizational analysis. A
thorough process of gathering information should be emphasized.
7. Downsizing has played a major role in changing U.S. organizations. Analyze the internal
and external forces for change regarding downsizing an organization.
Students may tend to focus on the external forces that lead to downsizing. Be sure students are
aware that internal factors may also serve as forces for downsizing.
8. If you were in charge of designing the ideal management development program, what topics
would you include? Why?
Students may select trendy topics rather than topics that are based in theories. Be sure
students provide justification for their responses.
9. Find an article that describes an organization that has gone through change and managed
it well. Develop an Organizational Reality feature of your own about the example you
find using the format in this book. Prepare a brief oral presentation of your Organizational
Reality for your class.
Following the class presentations, discuss the similarities and differences that exist in how the
companies managed change. Students should consider why different approaches to change
were effective and identify any commonalties that they see in managing change effectively.
10. Think of a change you would like to make in your life. Using Figure 16.1 as a guide,
prepare your own force field analysis for that change. How will you overcome the forces for
the status quo? How will you make sure to refreeze following the change? Summarize
your analysis in an action plan.
Students should be very specific in the action plan. You may also want students to consider a
plan for evaluating their effectiveness at implementing the change.
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4. Suppose you are a consultant, and an organization asks you to deliver a team-building
intervention. You know a little about team building, but not a lot. You do know that a competitor
will probably get the job if you do not do it. What should you do?
This is extremely dangerous and risky for you and those involved with the process. It is better to
let the competitor have the program if you are not trained for the intervention. There is a good
chance your lack of knowledge would backfire on you if you proceeded.
5. Suppose you are a consultant, and a company asks you to assist in rewriting its policies and
procedures manual to help eliminate the company's excessive absenteeism. From your limited
knowledge about the company, you suspect that the problem lies elsewhere, and that changing
the manual will not solve the problem. What should you do?
Go through the logical steps for needs analysis and outline those issues with the individuals that
are encouraging the project.
CHALLENGES
16.1 TOLERANCE FOR AMBIGUITY
This scale will give students a sense of their comfort with change in organizations. This challenge
might be a good lead-in to a class discussion of the reasons individuals resist change and of how
organizations can better manage the change process given that everyone does not tolerate
ambiguity to the same degree.
16.2 APPLYING FORCE FIELD ANALYSIS
This challenge can be tied to Discussion and Communication Question #10 that asks students to
prepare a force field analysis of A change they desire to make in their lives. Prior to students
completing this analysis, select an example and walk the students, as a class, through a force field
analysis so that they understand better how to apply this type of analysis to their own experience.
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EXPERIENTIAL EXERCISES
16.1 ORGANIZATIONAL DIAGNOSIS OF THE UNIVERSITY
Instructor's Notes:
This exercise is intended to give students experience in organizational diagnosis with an
environment in which they are familiar. It is useful to point out that they may not know enough
about all aspects of the university to proceed through the diagnosis. You might want to query
them on how they would gather significant information on the areas where they are least
comfortable. It is also interesting to ask them if they believe they are too biased in any of the
areas because of personal experiences that may not be true for the majority of students. Finally,
would they be better change agents than an outside consultant?
16.2 TEAM BUILDING FOR TEAM EFFECTIVENESS
Instructor's Notes:
This exercise is a team building effort stressing change. This is a good closure exercise for the
end of the semester. If you use peer evaluation or group grading this might be a good followup to the evaluation. Most students have a tendency to paint a better picture of their group
than where they actually performed because they believe we expect them to be positive.
Emphasize that if their group was a disaster, it is useful to analyze why this happened, and
how they could have prevented the outcome knowing what they know at the end of the
semester.
ALTERNATIVE EXPERIENTIAL EXERCISE
CRUSTY RUSTY
Adapted from Ken Kozar, The University of Colorado, Boulder
This exercise points out the difficulties for individuals in dealing with change. Students are
divided into groups of three or four, with one person as Crusty Rusty, the curmudgeon opposing
the computer change, and Jesse, the young junior accountant sent to convince Rusty that a change
is needed. In addition, there is an observer that records the interactions. I ask the Jesses to leave
the room with me, and have the Rustys spread out across the room and the observers select a
group to observe. The Jesses are instructed to approach the Rustys as if they are actually in their
office, beginning with hello.
Students enjoy this exercise. Try to assign students to roles that they would least likely be in.
CRUSTY RUSTY
ROLE FOR JESSE BECKER, JUNIOR ACCOUNTANT
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You are a junior accountant for the National Quik Service Company (QSC) out of Dallas. You
have been working at this job for six months, this being your first "real" job since graduating from
the University. You have just completed a computerized statistical analysis system for payroll
which was well received by the terminal managers. It provided more relevant and current
information than they have ever had before. Both you and the managers are enthusiastic about
the success of the system and the potential of other computerization for the company. Suddenly,
your opportunities have expanded throughout the organization.
This afternoon you have a meeting with Rusty Griffen, the specialist in the division concerning
dispatching, which is the next project the managers have jokingly said "couldn't be undertaken
before Rusty retires." At the present time, dispatching is determined manually, resulting in
numerous errors and requiring a great deal of memory for one individual. The major problem is
that often two trucks would be dispatched to pick up the same loads at different times. You feel
that a computerized inventory system similar to ones used by other transportation industries could
be used as a model.
You have tried to work with Griffen in the past. You feel all of your ideas have been bucked at
every opportunity, particularly regarding anything remotely involving change. You feel Griffen's
idea of automation is to get a larger piece of paper divided into more columns and a copier that
could reproduce this master to the same size in color.
Rusty does not trust the computer ever since there was a deduction taken out of a paycheck in
1982. Rusty will retire in 8 years and it seems to you that any change now will threaten the
security that this position has built over the years. With Rusty's attitude toward change, you feel
the trucking industry would still be in the pony express days. You sincerely believe the proposed
system could improve and set your organization apart in the freight hauling industry.
Well, time to head up to Rusty's office for that chat.
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You are the dispatcher in charge of 400+ trucks. In another 8 years you will be retiring from the
company with 30 years service. Prior to the dispatcher job, you worked as an independent
operator and were noticed by your supervisors for your meticulous and accurate reporting of your
trips, and consequently, you were promoted to the dispatcher position. You have the task of
summarizing the day to day activities and projecting future loading points. You have quite a
system worked out with west coast trucks indicated in blue, inbound noted by red, unloaded and
ready for the trip back, another color, etc.
This afternoon you are to meet with Jesse Becker, the new computer whiz. Your supervisor heard
about a computer system used to manage another company at a recent conference. You feel the
afternoon will be wasted since you have many trucks to record and update since a fluid was not
pure that was pumped into 15 outgoing trucks. You feel these computer kids don't understand the
first principles of the trucking industry. If they did, they would not have all these fancy and costly
ideas. Anyhow, you feel that if you put the data in the computer, you would never really be sure
it's there, just like the time your paycheck got mixed up and then those computer people couldn't
correct it.
Well, it is time for the meeting. You hope the kid, whose total years of age don't even come close
to your years of experience, doesn't try to tell you how to do your job.
Other comments?
MBTI EXERCISE:
Exercise Learning Objectives:
a. Students will understand that managing change is not the same for everyone.
b. Students will understand that "change" is defined differently by various groups.
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c. Students will comprehend that to affect an organizational change, managers must be attuned to
the different ways change affects people.
Exercise Overview:
1. Students will form teams of like functional pairs (ST, SF, NF, and NT). The instructor should
ensure that no more than six students are in a particular group. If necessary, make two groups of
the same functional pair.
2. Students will construct a "Force Field Analysis" chart concerning managing change.
3. Students will report out their results and the instructor will summarize the exercise.
4. The instructor should know how to construct and interpret a force field analysis. We
recommend that the students use Experiential Exercise 16.2 before this exercise.
Exercise Description:
a. Individually and silently, students will develop two lists. The first list is entitled, "reasons that I
welcome change" and the second list is titled, "reasons that I resist change." Each list should take
about five minutes. It is important that silence be enforced. Remember that those people who
prefer introversion need time to reflect. This gives them that time and allows them to better
participate in the exercise.
b. Students form teams of like functional pairs (ST, SF, NF, and NT).
c. On flip chart paper, students will first list the reasons they welcome change. The students
should report in some sequential order until everyone states every item on his or her list.
d. Students do the same thing for the reasons that they resist change.
e. Using one piece of flip chart paper, students will draw a vertical line in the center and title the
left side of the paper, "change welcomers" and on the right side the title is "change resistors."
f. Students will review their consolidated lists and pick out 10 items to write on each appropriate
half of the paper. The instructor should encourage students to list the strongest "welcomers" and
the strongest "resistors."
g. Students should now spend 10 minutes (5 minutes per side) talking about why these
"welcomers" and "resistors" are so important to them.
h. Students report out.
g. Instructor summarizes the lesson.
What the instructor should expect:
a. "ST" groups may list in the resistor column such concepts/ideas as: goals are unclear, my job
will change, I'll have to physically move, our organizational structure will change, I've never seen
this before, it costs too much, and too much uncertainty.
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b. "SF" groups may list in the resistor column such concepts/ideas as: I won't be working near or
with my friends, I don't know anyone in that department, the boss is real hard to get along with, I
don't know enough details, managers always keep us in the dark about these things, and it won't
be fun any more.
c. "NF" groups may list in the resistor column such concepts/ideas as: our organizational
structure will change, they never take into account the "human costs" of change, we won't know
our role and place in the new organization, I don't understand how this will help the organization
perform better, and the change will disrupt all of my work relationships.
d. "NT" groups may list in the resistor column such concepts/ideas as: we're changing just for
the sake of changing, no thought was added to this process, we could have fixed the existing
structure easier if someone had just asked us, I don't understand the reason for the change, this
change doesn't fit the other things we're doing, and our energies are directed away from system
improvement--we'll have to start all over again.
e. The "welcomers" side of the chart should list opposite ideas and concepts.
Instructor' Summary:
We can see from the discussion that the ST and SF groups have several things in common.
These groups want to know the details concerning why we must move. Neither of these groups
embraces change unless you can prove to them in "black and white" that this changes is necessary.
The "STs" will want a logical explanation and the "SFs" will want you to show them how this
change will enhance the working relationships of the employees.
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We can see from the NF and NT groups that they also have a lot in common. Both of these
groups want to know how this change will affect the internal and external relationships of the
organization. The "NFs" wish to also ensure that any anticipated move clearly addresses the
human engineering aspects. The "NTs" want to make sure that the change is logically planned and
executed.
Remember that all organizations are composed of people who possess these MBTI functional
pairings. In order to properly affect change, a manager needs to make sure that the concepts and
ideas of the three pairs he or she does not prefer are taken into account.
EXTRA EXPERIENTIAL EXERCISES
Marcic, Dorothy & Seltzer, Joe. Organizational Behavior: Experiences and Cases, 5th Ed.
South Western College Publishing Company, 1998.
Downsizing: Merger at Local Bank. p. 259-261. Time: 20-40 minutes.
Purpose: To discuss change issues regarding mergers and downsizing.
Organizational Assessment of Campus. p. 278-279. Time: 50 minutes.
Purpose: To apply organizational development concepts.
Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company,
1994.
In Basket Exercise 1: Working with New, Changing and Ambiguous Situations. p. 44.
Exercise 1: Planning for Change. p. 461.