Organizational Change: Two Metaphors

1
Organizational ChangeTwo Metaphors

• Calm Waters (Incremental)
• White Water Rapids (Radical)

2
Forces for Change

• External
• Customers
• Competitors
• Technology
• Economic
• Social
• Political
• International

• Internal
• Financial Problems
• Production Inefficiencies
• Employee Expectations/ Demands
• Management Goals

3
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, RD,
  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
OD Techniques

• 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

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
Lewins Force Field Analysis Decision to Engage
in Exercise
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.
Forces for Change (Driving) Weight gain Minimally
passing treadmill test Feel lethargic, having no
energy Family history of cardiovascular
disease New, physically demanding job
Equilibrium
16
FORCE FIELD ANALYSIS
17
Lewins 3-Step Change Model

• 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

18
Lewins Change Model