change, conflict, and negotiation.ppt

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Chapter Sixteen

Change, Conflict, and

Negotiation



Copyright © Houghton Mifflin Company. All rights reserved. Chapter Sixteen | 2

Chapter Objectives

• Identify and describe four types of organizationalchange according to the Nadler-Tushman model.

• Explain how people tend to respond differently to

changes they like and those they dislike.• List at least six reasons why employees resist

changes and discuss what management can doabout resistance to change.

• Describe how the unfreezing-change-refreezingmetaphor applies to organization development(OD).




Chapter Objectives (cont’d)

• Describe tempered radicals and identify the 5Psin the checklist for grassroots change agents.

• Contrast competitive and cooperative conflict

styles.• Identify and describe five conflict resolution

techniques.

• Identify and describe the elements of effective

negotiation and explain the advantage of addedvalue negotiating (AVN).




Change: Organizational Perspectives

• Types of Organizational Change – Anticipatory changes: Planned changes based on

expected situations

– Reactive changes: Changes made in response tounexpected situations

– Incremental changes: Subsystem adjustments requiredto keep the organization on course

– Strategic changes: Altering the overall shape or

direction of the organization




Figure 16.1: Four Types of

Organizational Change

Source: Copyright © 1990, by The Regents of the University of California. Reprinted from the CALIFORNIA MANAGEMENT REVIEW, Vol. 32, No. 2.

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(cont’d)

• Tuning – The most common, least intense, and least risky type of

change

– Also known as preventive maintenance and kaizen(continuous improvement)

– Key is to actively anticipate and avoid problems rather than waiting for something to go wrong

• Adaptation – Incremental changes that are in reaction to external

problems, events, or pressures


http://slidepdf.com/reader/full/change-conflict-and-negotiationppt 7/35Copyright © Houghton Mifflin Company. All rights reserved. Chapter Sixteen | 7


(cont’d)

• Reorientation

– Change that is anticipatory and strategic in scope and

causes the organization to be significantly redirected

– Also called “frame bending” (Nadler and Tushman)

• Re-Creation

– Intense, risky, and decisive change that reinvents the

organization

– Also called “frame breaking” (Nadler and Tushman)



Individual Reactions to Change

• How People Respond to Changes They

Like

– Three-stage process

• Unrealistic optimism

• Reality shock

• Constructive direction



Figure 16.2: How People Tend to

Respond to Changes They Like



Individual Reactions to Change (cont’d)

• How People Respond to Changes They

Fear and Dislike

– Stages

• Getting off on the wrong track

• Laughing it off

• Growing self-doubt

• Buying in• Constructive direction



Figure 16.3: How People Tend to Respond

to Changes They Fear and Dislike



Why Do Employees Resist Change?

• Surprise

– Unannounced significant changes threaten employees’

sense of balance in the workplace.

• Inertia – Employees have a desire to maintain a safe, secure,

and predictable status quo.

• Misunderstanding/Ignorance/Lack of Skills

– Without introductory or remedial training, change may

be perceived negatively.



Why Do Employees

Resist Change? (cont’d)

• Emotional Side Effects

– Forced acceptance of change can create a sense of

powerlessness, anger, and passive resistance to

change.• Lack of Trust

– Promises of improvement mean nothing if employees

do not trust management.

• Fear of Failure – Employees are intimidated by change and doubt their

abilities to meet new challenges.



Why Do Employees


• Personality Conflicts

– Managers who are disliked by their employees are poor

conduits for change.

• Poor Timing – Other events can conspire to create resentment about

a particular change.

• Lack of Tact

– Not showing sensitivity to feelings can create

resistance to change.



Why Do Employees


• Threat to Job Status/Security – Employees worry that change threatens their job or

security.

• Breakup of Work Group – Changes can tear apart established on-the-job socialrelationships.

• Passive-Aggressive Organizational Culture

– The more things change, the more they stay the same.• Competing Commitments

– Change can disrupt employees in their pursuit of other goals.



Overcoming Resistance

to Change

• Strategies for Overcoming Resistance to Change – Education and communication

– Participation and involvement

– Facilitation and support – Negotiation and agreement

– Manipulation and co-optation

– Explicit and implicit coercion




Making Change Happen

• Two Approaches to Organizational Change

– Organization Development (OD)

• Formal top-down approach

– Grassroots Change

• An unofficial and informal bottom-up approach




Organization Development (OD)

• Planned change programs intended to help

people and organizations function more effectively

• Applying behavioral science principles, methods,

and theories to create and cope with change




Objectives of OD

• Deepen sense of organizational purpose.

• Strengthen interpersonal trust.

• Encourage problem solving rather than

avoidance.• Develop a satisfying work experience.

• Supplement formal authority with knowledge andskill-based authority.

• Increase personal responsibility for planning andimplementing.

• Encourage willingness to change.




The OD Process

• Unfreezing, Change, Refreezing (Kurt Lewin)

– Unfreezing: Neutralizing resistance by preparing people

for change

– Change: Introduction of the intervention – Refreezing: Systematically following a change program

for lasting results




Figure 16.4:

A General Model of OD




Unofficial and Informal

Grassroots Change

• Tempered Radicals – People who quietly try to change the dominant

organizational culture in line with their convictions

– Guidelines for tempered radicals:• Think small for big results.

• Be authentic.

• Translate.

• Don’t go it alone.




Figure 16.5: The 5P Checklist for All

Change Agents




Managing Conflict

• Conflict – One person’s incompatible behaviors that make

another person’s actions less effective

• Dealing with the Two Faces of Conflict – Competitive conflict: Parties pursuing directly opposite(win-lose) goals

– Cooperative conflict: A mutually reinforcing experience(win-win) that serves the best interests of both parties




Figure 16.6: A Competitive Versus

Cooperative Conflict

Source: Reprinted from LEARNING TO MANAGE CONFLICT: GETTING PEOPLE TO WORK TOGETHER

PRODUCTIVELY by Dean Tjosvold. Copyright © 1993 Dean Tjosvold. First published by Lexington Books. All rights

reserved. All correspondence should be sent to Lexington Books, 4720 Boston Way, Lanham, MD 20706.




Managing Conflict (cont’d)

• Conflict Trigger – Any factor that increases the chances of conflict

• Conflict Triggers

– Ambiguous or overlapping jurisdictions – Competition for scarce resources

– Communication breakdowns

– Time pressure

– Unreasonable standards, rules, policies, or procedures – Personality clashes

– Status differentials

– Unrealized expectations




Managing Conflict (cont’d)

• Resolving Conflict

– Doing nothing is usually not a viable option.

– Conflict Resolution Techniques

• Problem solving

• Superordinate goals

• Compromise

• Forcing• Smoothing




Negotiating

• Negotiation

– A decision-making process among interdependent

parties with different preferences

• Common Types of Negotiation – Two-party negotiation (e.g., buyer and seller)

– Third party negotiation (e.g., agents and arbitrators)




Negotiating (cont’d)

• Elements of Negotiation

– Adopting a win-win attitude

• Understanding that a mutually beneficial agreement addresses

both parties’ interests

– Knowing your BATNA (best alternative to a negotiated

agreement)

• Your “bottom line” for accepting or rejecting offers

– Identifying the bargaining zone

• Negotiation is useless if both parties involved have no common

ground on which to maneuver during bargaining.

Fi 16 7




Figure 16.7:

The Bargaining Zone for Negotiators




Negotiating (cont’d)

• Added Value Negotiating (AVN)

– A practical five-step win-win process involving the

development of multiple deals

• Clarify subjective and objective interests; seek commonground.

• Identify options and their marketplace values.

• Design alternative deal packages that foster a creative

agreement.

• Select a mutually acceptable deal that is feasible for bothparties.

• Perfect the deal by hammering out unresolved details.



Terms to Understand

• Anticipatory changes

• Reactive changes

• Incremental changes

• Strategic changes

• Organization

development (OD)

• Unfreezing

• Refreezing

• Tempered radicals

• Conflict

• Conflict trigger

• Negotiation

• Bargaining zone

• Added value

negotiating

change, conflict, and negotiation.ppt

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