Because learning changes everything.

Chapter 17
Managing Organizational
Change

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 Learning Objectives
• Identify the three stages of the general organizational
change model.
• Discuss the advantages and disadvantages of internal
versus external change agents.
• Give examples of how individuals and organizations resist
change.
• Summarize the components of the model of organizational
change and development.
• Express the degree to which change interventions are
effective.
• Describe the guidelines for managing change.

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 Change
• Pervasive.
• Persistent.
• Permanent.
• Accelerating.

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 A General Model of Organizational
Change (Based on Exhibit 17.1)

Unfreezing. Changing. Refreezing.

Helping employees Encouraging Reinforcing and
let go of the old or convincing locking in new
ways of doing employees to behaviors and
things that are acquire attitudes attitudes through
no longer effective and behaviors that rewards and
or aligned with new support the new recognition, and
organizational direction of the training and new
goals. organization. Employee
orientation
programs.

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 Change Agents
A change agent:
• Brings a different perspective.
• Challenges the status quo.

Success of the program rests on the relationship between

the change agent and key decision makers.

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 Change Agent Types
• External.
• Internal.
• External-Internal.

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 Resistance to Change
The more significant the change, the more intense the…
• Fear.
• Anxiety.
• Resistance.

Resistance is often triggered by a change in routing,

patterns, and habits.

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 EXHIBIT 17.2 Range of Individual
Resistance Behaviors

Access the text alternative for slide images.

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 Reasons for Individual Resistance
• Perceived loss of position, power, status, quality of life,
authority.
• Economic insecurity.
• Alteration of social friendships and interactivity.
• Fear of the unknown.
• Failure to recognize the need for change.
• Cognitive dissonance due to new people, processes,
systems, technology, expectations.
• Fear of a lack of competence.
• Believing the proposed change is wrong or bad.

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 Organizational Barriers to Change
• Professional and functional orientation of a department,
unit, or team.
• Structural inertia.
• Perceived threats to the power balance.
• Previous change failure.

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 Strategies for Overcoming
Resistance
• Give people and organizations a reason to change.
• Get more people involved.
• Increase communication.
• Identify & guide champions/supporters of change.
• Obtain upper-level management support.
• Create a learning organization.

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 Characteristics of a Learning
Organization
• Open discussions and accessibility to information.
• Clear vision expressed at all levels.
• Strong emphasis on interdependence, worth, and
importance of each person and unit.
• Clear goals and performance expectations.

• Commitment to learning, improving, personal growth.

• Concern for measurable results whenever possible.
• Curiosity to try new methods and experiment.
• Acceptance of failure.

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 EXHIBIT 17.3 A Model for Organizational
Change and Development

Access the text alternative for slide images.

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 Forces for Change
External Forces. Internal Forces.
• Beyond the control of • Generally within
management management’s control.
• Economic forces. • Process problems.
• Technological forces. • Behavioral problems.
• Social forces.
• Political forces.

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 Diagnosis of a Problem
• What is the problem versus the symptoms?
• What must be changed to resolve the problem?
• What outcomes are expected from the change?
• How will those outcomes be measured?

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 Data Collection Process
• Questionnaire data can be • Workshops can be
collected from large arranged with groups to
numbers of people. explore different
• Direct observations can perceptions of problems.
be taken of actual • Documents and records of
workplace behavior. the organization can be
• Selected individuals in key examined for archival and
positions can be current information.
interviewed.

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 Choosing a Development Method
The development method depends on:
• The nature of the problem.
• The depth of the intended change.

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 Approaches to Change
Management
Common Approaches:
• Structural.
• Task & Technological.
• People.

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 Structural Approaches to Change
Management by Objectives (MBO).
• Objective setting.
• Subordinate participation.
• Feedback.
• Evaluation.

Reengineering Efforts.
• Streamlining.
• Integrating.
• Transforming.

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 Task and Technological Approaches
• These approaches focus on the work being performed.
• Task changes job design changes and job enrichment.
• Technological approaches changes in work flow.
• Training is integral to the process.

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 Human Capital Approaches
• Team Building.
• Ethics Training.
• Mentorship Programs.
• Introspection.

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 Introspection Development Goals
1. Developing Objectivity. 5. Increased tolerance for
2. Learning. ambiguity and paradox.

3. Improving Self- 6. Action taking.

confidence. 7. Achieving life balance.
4. Increased sense of 8. Open access to creativity
personal responsibility. and intuition.
9. Learning egolessness.

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 TQM: A Multifaceted Approach
Key TQM components:
• Goal.
• Definition of quality.
• Nature of the environment.
• Role of management.
• Role of employees.
• Structural rationality.
• Philosophy toward change.

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 Appreciative Inquiry (AI)
• A method of focusing on positive or potential opportunities.
• An approach that asks questions and requires answers in
an attempt to seize and improve upon an organization’s
potential.

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 4-D Framework for Appreciative Inquiry
(Based on Exhibit 17.4)

[Link] 2. Dreaming 3. Designing 4. Delivering

g Phase. Phase. Phase. Phase.
Identifying Thinking Discussing Creating
everything about what and clear
that is the analyzing objectives of
considered “possibilities” what “should” “what is going
the best of are. be. to be.”
“what is.”

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 Impediments and Limiting
Conditions
• Leadership Climate.
• Formal Organization.
• Organizational Culture.

Choice of a change method is tempered by the

conditions that exist at the time.

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 Implementing the Method
Implementation of a change method has two
dimensions.
• Timing: selection of the appropriate time at which to initiate
the intervention.
• Scope: selection of the appropriate scale.

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 Evaluating Program Effectiveness
Bringing about change.
• An expenditure of organizational resources in exchange for
some desired result.

Evaluating the program has two problems.

• Obtaining data that measure the desired results.
• Determining the trend of improvement over time.

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 Six Steps of Evaluative Research
1. Determine the objectives of the program.
2. Describe the activities taken to achieve the objectives.
3. Measure the effects of the program.
4. Establish baseline points.
5. Control extraneous factors.
6. Detecting unanticipated consequences.

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 How Effective are Change
Interventions?
Critical Test of Change Intervention.
• Did it improve organization effectiveness?

Multimethod approaches are more successful than

single-method ones.

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 Significant Changes Occur When
• All employees participate in goal setting, decision making,
and job redesign.
• Employee collaboration is developed through team
building.
• The organizational structure is reorganized to
accommodate the new levels of participation and
collaboration.

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 Steps to Take When Managing
Change 1

1. Management and all involved must have high and visible

commitment to the effort
2. People involved need advance information that tells them
what is to happen, and why they are to do what they are
to do
3. The effort must be connected to other parts of the
organization
4. The effort must be directed by line managers and assisted
by a change agent if necessary

Steps 5-9 on following slide

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 Steps to Take When Managing
Change 2

5. The effort is based on good diagnosis and is

consistent with the conditions in the organization.
6. Management must remain committed to the effort
through all its steps.
7. Evaluation is essential and must be more than asking
people how they feel about the effort.
8. People must see the relationship between the effort
and the organization’s mission and goals.
9. Any change agent must be clearly competent.

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 Guidelines for Managing Change

Organizational change is a significant undertaking that

managers should go about in a systematic way.

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 In Review
• Identify the three stages of the general organizational
change model.
• Discuss the advantages and disadvantages of internal
versus external change agents.
• Give examples of how individuals and organizations resist
change.
• Summarize the components of the model of organizational
change and development.
• Express the degree to which change interventions are
effective.
• Describe the guidelines for managing change.

© McGraw Hill, LLC 35

 Because learning changes everything. ®

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© 2023 McGraw Hill, LLC. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill, LLC