Organizational Behavior

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Organizational Behavior

• Patricia Parker

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WEEK 8

• Technology
• Organizational Change

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Change
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Change
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Leaders Change

• Why Is It Critical for Leaders and Managers to Be
  Successful at Organizational Change?
• Because It's Their Job

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Leaders Change

• Leaders and managers continually make efforts to
  accomplish successful and significant change --
  it's inherent in their jobs.

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Think About It

• Most change initiatives (over 80) fail to meet
  expectations
• Most companies will start some type of change
  initiative (ISO, Lean, Six Sigma, Malcom
  Baldrige, diversity, etc, etc) at least every
  couple years

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Winston Churchill on Change

• To improve is to change to be perfect is to
  change often

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Charles Darwin on Change

• It is not the strongest of the species that
  survive, nor the most intelligent, but the one
  most responsive to change.

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Organizational Change According to its Scope and
Causes
UNEXPECTED
EXPECTED
TUNING (e.g., new policies, technologies)
ADAPTATION (e.g., new products or new features)
INCREMENTAL
RE-CREATION (e.g., new culture or total strategic
change)
REORIENTATION (e.g., organizational redesign or
reengineering)
RADICAL
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Changing Organizations Involves Extensive
Diagnosis, Action, and Evaluation
Diagnose Forces for and Against Change
Build Plan for Change
Select Change Agent
Implement Change Strategies
Evaluate Changes
Institutionalize Changes
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Forces for and Against Change
Forces for Change GREATER THAN Forces against
Change
Forces for Change
Forces Against Change
Forces for Change LESS THAN Forces against Change
Forces Against Change
Forces for Change
Forces for Change EQUAL TO Forces against Change
Forces for Change
Forces Against Change
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Equilibrium

• This equilibrium, or present level of
  productivity, can be raised or lowered by changes
  in the relationship between the driving and the
  restraining forces.

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Resistance To Change

• The leading reasons why people resist change are
  
• An individuals predisposition toward change
• Surprise and fear of the unknown
• Climate of mistrust
• Fear of failure
• Loss of status and/or job security
• Resistance to Change an emotional/behavioral
  response to real or imagined work change.

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Resistance to Change (cont)

• Peer pressure
• Disruption of cultural traditions and/or group
  relationships
• Personality conflicts
• Lack of tact and/or poor timing
• Nonreinforcing reward systems
• Leading Reasons Why People Resist Change (cont)

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• If a company has had trouble with making change
  work, the first place to look is company culture.

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What is a Workplace Culture?

• Workplace culture is a way of describing how a
  group of people work together.
• Workplace culture includes
• clothes you wear
• attitudes and rules of behavior
• ideals, values and beliefs
• communication and more.
• The culture is learned in everyday working.
• If management doesnt create the desired culture,
  one will develop anyway.

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Workplace Ideals and Values

• Whatever management rewards, management will get
• Reward yes men and you will get obedience, but
  no creativity.
• Reward squeaky wheels, soon all the wheels will
  squeak.
• Reward those that would climb on the backs of
  others to reach the top, and you will have
  politics instead of production.

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Workplace Beliefs that Make Change Difficult

• We never follow through on anything we start
• Management lies
• There is no point in making improvements around
  here, someone else will always get the credit for
  it
• They keep telling me I am not paid to think

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• Were too busy to work on making improvements.
  We have work to get out the door.
• Nothing changes around here.
• My ideas dont count.
• We always quit before we are done.

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Culture is the Foundation

• Without the right culture, all change initiatives
  will ultimately fail to some degree. It may
  appear they are successful in the short run, but
  in the long run, failure is guaranteed
• Buy-in, cooperation and involvement of all
  employees are critical to success.
• A We, not a us vs them, mentality is a critical
  part of a change friendly culture.

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Can Workplace Culture Change?

• Cultures are not static, they are constantly
  changing.
• The leaders of an organization set the tone for
  the culture. (So constantly changing leaders
  makes for a confusing culture)
• Change requires a strong commitment and daily
  follow through on the part of top management.
• When the leaders change their behavior and
  attitudes, the rest of the organization will
  follow.

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Barriers to Organizational Change

• Cultural values and beliefs
• What are the official company values and
  beliefs?
• What are the real employee values and beliefs?
• The bigger the gap between the real employee
  values and beliefs, and the values and beliefs
  needed to support the desired change, the bigger
  the challenge

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Barriers to Organizational Change

• Social Barriers
• Group solidarity or conflict among factions
• Department vs department blame game
• Profession vs profession blame game
• Management (the carpet people) vs workers blame
  game
• Youre not one of us until you have been here
  (________) years
• Firefighters more valuable than problem
  preventers (who gets the recognition?)

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Barriers to Organizational Change

• Threats to power and influence
• What is the real power structure?
• What is the real source of influence?
• Who currently with power, perceives the proposed
  change would cause them to lose power?

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Barriers to Organizational Change

• Leadership - behavior of top-level administration
  
• Lack of vision - no clear picture of what the
  future looks like (so why would anyone want to
  follow that person?)
• Lack of management commitment/support

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Barriers to Organizational Change

• Climate for change
• Does the organization have a climate for change,
  or is it hostile to change?
• What is the organizations history of effective
  change?
• Is senior management clearly committed to and
  supportive of the proposed change? (Note lip
  service does not count)

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Barriers to Organizational Change

• Technological barriers
• What equipment/technology will be needed for this
  change to be effective?
• What knowledge and skills will be needed for this
  change to be effective?

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Barriers to Organizational Change

• Psychological Barriers
• Personal and Professional Identity
• Are the organizational levels, or professional
  groups who perceive a loss if the change is
  effective?
• Example managers typically feel threatened by
  lean because of pushing down decision making
• This needs to be anticipated and addressed early
  on

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Crises can Cause Change
Internal
External

• Major industrial accidents
• Product injuries
• Computer breakdown
• Defective, undisclosed information
• Failure to adapt/change
• Sabotage by insiders
• Organizational breakdown
• Communication breakdown
• On-site product tampering
• Illegal activities
• Occupational health diseases

• Widespread environmental destruction
• Natural disasters
• Hostile takeover
• Societal crises (civil or political)
• Large-scale systems failure
• Sabotage by outsiders
• Terrorism
• Executive kidnapping
• Off-site product tampering
• Counterfeiting

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Choosing a Change Agent
Internal Change Agents
External Change Agents

• Possess better knowledge of the organization
• Are more quickly available
• Require lower out-of-pocket costs
• Are a known quantity
• Have more control and authority

• Have more objective views of the organization
• Have more experience in dealing with more diverse
  problems
• Can call on more individuals with diverse
  expertise
• Have more technical knowledge, competence, and
  skills available

Advantages
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Choosing a Change Agent (Cont.)
Internal Change Agents
External Change Agents

• Have less knowledge of the organization
• Require higher out-of-pocket costs
• Are an unknown quantity
• Have longer start-up time
• Reflect unfavorably on the image of management

• May be too close to the problem
• May hold biased views
• May create additional resistance if views as part
  of the problem
• Must be reassigned not available for other work

Disadvantages
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Unethical Behavior can Adversely Affect Change
Efforts

• Emphasis on short-term revenues over long-term
  considerations.
• Routinely ignoring or violating internal or
  professional codes of ethics.
• Looking for simple solutions to ethical problems,
  being satisfied with quick fixes.
• Unwillingness to take an ethical stand if there
  is a financial cost.
• Creation of an internal environment that
  discourages ethical behavior or
• encourages unethical behavior.
• Dispatch of ethical problems to the legal
  department.
• View of ethics solely as a public relations tool.

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Unethical Behavior can Adversely Affect Change
Efforts (Cont.)

• Treatment of employees that differs from
  treatment of customers.
• Unfair or arbitrary performance appraisal
  standards.
• Lack of procedures or policies for handling
  ethical problems.
• Lack of mechanisms for internal whistle-blowing.
• Lack of clear lines of communication.
• Sensitivity only to shareholder needs and
  demands.
• Encouragement of employees to ignore their
  personal ethical values.

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Evaluation of Change Occurs at Four Levels
AFFECTIVE
LEARNING
CHANGE
BEHAVIORAL
PERFORMANCE
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What Does Change Require?

• Skills - The knowledge (tools) to get the job
  done
• Vision - Where are we going?
• WIIFM - Why should the employees care?
• Resources - The time and equipment to get the job
  done
• Action Plan - The detailed how-to to get from
  here to there

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Successfully Leading Change

• Adopt and Foster a Sense of Urgency
• Learning/Unlearning
• Get rid of the things that are no longer viable
• Encourage an Open Environment
• Every improvement is welcome
• Top 3 priorities
• (1) Communication,
• (2) Communication,
• (3) Communication

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People Dimension Lessons

• Communicate
• vision / objectives / strategy / benefits /
  implications Confirm organization wide
  understanding and commitment
• Manage expectations / expect barriers to change
• good / bad / cynics / resisters
• Involve people (eg in solutions development)
• do it with them not to them - BUT anticipate the
  future
• Prepare thoroughly (eg business process mapping)
• people want to know how change affects them
• Address cultural issues
• behavioral change needs to be LED and CHAMPIONED
• People dimension - essential to success, but not
  easy

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http//www.bright.net/dlcy/tool/cheese2.htm
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Who are you?
Hem who does not want to change.Haw who
learns to laugh at his fear.Sniff who smells
change in the air.Scurry who goes into action.
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The Handwriting on the Wall
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Four Change Skills

• Skill 1 Anticipating Change
• Skill 2 Taking New Actions Now
• Skill 3 Moving Beyond Fear
• Skills 4 Imagining Real Success

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