Overcoming Resistance to Change

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Chapter 6

• Overcoming Resistance to Change

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Learning Objectives (part 1 of 2)

• Identify forces within individuals and
  organizations that cause resistance to change.
• Recognize strategies that can increase motivation
  to change.

3
Learning Objectives (part 2 of 2)

• Diagnose forces driving and resisting
  organization change.
• Experience reactions to a change situation.

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Toys Are Mattel (part 1 of 2)

• The toy industry is going through radical change.
  
• Mattel has history of nearly falling apart every
  decade since the 1970s.

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Toys Are Mattel (part 2 of 2)

• CEO Eckert moving Mattel to redefine core
  business.
• Better control inventory
• Streamline manufacturing
• Develop more toys in-house.
• Expand overseas as toys mature in the U.S.

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Change and Reinvent (part 1 of 2)

• Many organizations being forced to radically
  change.
• Organizations face major challenge in managing
  change.

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Change and Reinvent (part 2 of 2)

• Organizations need capacity to adapt quickly.
• People are focus of most serious challenges.
• Large scale changes often incur significant
  problems and challenges.

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Changes on Personal Level

• Set patterns of behavior.
• Defined relationships with others.
• Work procedures, and job skills.

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Changes on Organizational Level

• Policies.
• Procedures.
• Organization structures.
• Manufacturing processes.
• Work flows.

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Life Cycle of Resistance to Change (part 1 of 5)

• The response to change tends to move through a
  life cycle of 5 phases
• Phase 1.
• Only few people who see need for change.
• Resistance appears massive.

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Life Cycle of Resistance to Change (part 2 of 5)

• Phase 2.
• Forces for and against change become
  identifiable.
• Change more thoroughly understood.
• Novelty of change tends to disappear.

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Life Cycle of Resistance to Change (part 3 of 5)

• Phase 3.
• Direct conflict and showdown between forces.
• This phase probably means life or death to change.

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Life Cycle of Resistance to Change (part 4 of 5)

• Phase 4.
• Remaining resistance seen as stubborn.
• Possibility that resisters will mobilize support
  to shift balance of power.

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Life Cycle of Resistance to Change (part 5 of 5)

• Phase 5.
• Resisters to change are as few and as alienated
  as were advocates in first phase.

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Major Factors AffectingSuccess of Change

• Advocates of change
• Degree of change
• Time frame

• Impact on culture
• Evaluation of change.

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Figure 6.1Change Factors
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Advocates of Change

• Person leading change program is often most
  important force for change.
• Internal or external OD practitioners may be
  brought in to assist.

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Degree of Change

• Is change minor or major?
• The greater the degree of change, the more
  difficult it is to implement.

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Time Frame

• Greater chance of success if change is gradual
  and in longer time frame.
• Some organizations only chance for survival
  depends on radical change introduced swiftly.

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Impact on Culture

• The greater the impact on existing culture, the
  greater the resistance and difficulty to
  implement change.

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Evaluation on Culture

• Standards of performance developed to measure
  change and impact on organization.

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A Change Model (part 1 of 5)

• Two major considerations in organizational change
  are
• Degree of change.
• Impact on organizations culture.

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Figure 6.2Change Model
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A Change Model (part 2 of 5)

• Quadrant 1
• Minor change, minor impact on culture.
• Resistance will be at lowest level and success
  will be most probable.

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A Change Model (part 3 of 5)

• Quadrant 2
• Minor change, major impact on culture.
• Some resistance can be expected.

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A Change Model (part 4 of 5)

• Quadrant 3
• Major change, minor impact on culture.
• Some resistance is likely.
• Good management can probably overcome it.

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A Change Model (part 5 of 5)

• Quadrant 4
• Major change, major impact on culture.
• The greatest resistance can be predicted.
• The probability of success is low.

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Driving Forces Toward Acceptance of Change

• Driving forces are anything that increases
  organization to implement proposed change.
• Driving forces include
• Dissatisfaction with present situation.
• External pressures toward change.

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Momentum Toward Change

• Once change underway, certain forces tend to push
  change along.
• Those involved probably become committed.
• When money is committed to start a change,
  organization likely will want to continue.
• Change in one part of organization may set off
  chain reaction in other parts.

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Motivation by Management

• Manager or advocate of change becomes motivating
  force.
• Top managements encouragement can motivate
  change.

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Our Changing WorldGlobalization of Worlds
Business?(part 1 of 3)

• Globalization has occurred for hundreds of years
  but recently experienced exponential growth.

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Our Changing World (part 2 of 3)

• Reasons for Increase Include
• Improvements in communications and
  transportation.
• More efficient global banking systems.
• Surpluses in capital in US, Japan, Europe.
• Worldwide lowering of trade barriers.

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Our Changing World (part 3 of 3)

• Statistics of globalization include
• By 2000 number of MNCs above 63,000.
• 1,000 largest MNCs account for 80 of worlds
  industrial production.
• MNCs are based all over world
• US 37. Japan 21. Europe 25.
• Also based in developing countries.

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Restraining Forces Blocking Implementation of
Change (part 1 of 2)

• Uncertainty regarding change.
• Fear of unknown.
• Disruption of routine.
• Loss of benefits.

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Restraining Forces Blocking Implementation of
Change (part 2 of 2)

• Threat to security.
• Threat to position power.
• Redistribution of power.
• Disturb existing social networks.
• Conformity to norms and culture.

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Driving Forces and Restraining Forces Act in
Tandem

• Effective change programs increase driving forces
  and decrease restraining forces.
• Force-field analysis model (see Ch 5) is useful
  way to view driving and restraining forces.

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Strategies to Lessen Resistance(part 1 of 2)

• Education and communication.
• Create a vision.
• Participation and involvement of members.
• Facilitation and support.
• Negotiation and agreement.

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Strategies to Lessen Resistance(part 2 of 2)

• Leadership.
• Reward systems.
• Explicit and implicit coercion.
• Climate conducive to communications.
• Power strategies.

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OD In Practice How Dupont Shortened Its
Stove-pipes (part 1 of 3)

• Industrial Polymers Division (IPD) shows how
  DuPont can change.
• Products out-dated.
• Problems included low morale and low
  productivity.
• Top and middle management understood need to
  improve.

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OD in Practice (part 2 of 3)

• Only major change would improve division.
• Forces for change included
• People aware of average performance.
• They had desire to turn things around.
• Widely held belief that survival of division and
  personnel hung in balance.

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OD in Practice (part 3 of 3)

• Vision statement was developed by employees.
• Plans made to implement team efforts and
  self-management.
• No customary stove-pipe hierarchy of
  supervisors and no formal departments.

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Keywords and Concepts

• Driving forces - increases client system to
  implement proposed change.
• Employee stock ownership plan (ESOP) - grant
  stock or stock options to broad section of
  employees.

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• Gain sharing - reward system that recognizes
  value of specific group.
• Knowledge-based pay - reward system based on the
  knowledge or skills a worker has.
• Open-book management - employees see companys
  financial records to analyze problems for
  themselves.

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• Power strategies - technique for lessening
  resistance to change that uses power structure in
  an organization.
• Profit-sharing - uses the performance of business
  to calculate employee pay.
• Restraining forces - forces that block
  implementation of a change program.

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Preparations for Next Chapter(part 1 of 2)

• Read Chapter 7.
• Complete Step 1 of OD Skills Simulation 7.1, form
  teams of six, and assign roles.
• Complete Steps 1 and 2 of OD Skills Simulation
  7.2.

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Preparations for Next Chapter(part 2 of 2)

• Read and prepare for Step 1 of OD Skills
  Simulation 7.3.
• Read and analyze Case The OD Letters.