plo slide chapter 16 organizational change and development

8/20/2019 Plo Slide Chapter 16 Organizational Change and Development

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OrganizationalOrganizationalOrganizationalOrganizational

C H A P T E RC H A P T E R 1616

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.McShane/ Von Glinow 2/e

Change andChange andDevelopmentDevelopmentChange andChange andDevelopmentDevelopment


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Driving Change at EDSDriving Change at EDS

listening to customer complaints

Richard H. “Dick” Brown

drove the change effort at

EDS by:


AP/ Wide World

changing the firm’s structure

monitoring the change process

communicating the change

directly with employeesreplacing several executives


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Some External Forces for ChangeSome External Forces for Change

InformationInformation

TechnologyTechnology

GlobalizationGlobalization

Easier information transfer

Facilitates global structures

Requires new competenciesand expectations


& Competition& Competition

DemographyDemography

Facilitates telecommuting; newemployment relationships

More emphasis on knowledgemanagement


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Global competition

Technology makes it easier tocompete quickly




Results in restructuring,outsourcing, mergers produces many employment

changes


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More educated workforce

want involvement; interesting work




Younger generation less intimidated by status

want a more balanced work life

Cultural changes more individualism in traditionally

collectivist countries


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Desired

Conditions

Force Field AnalysisForce Field Analysis

RestrainingForces Driving

RestrainingForces


CurrentConditions

Before

Change

After

Change

DrivingForces

RestrainingForces

During

Change

DrivingForces


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Resistance to Change at BP NorgeResistance to Change at BP Norge

“We already have teams!”

“SDWTs don’t work on rigs!”

Employees initially resisted self-

directed work teams (SDWTs) at BP

Norge’s North Sea drilling rigs.


“This creates more work -- wewant higher pay!”

“I don’t know how to work inteams.”

“SDWTs will threaten my job as asupervisor!”

AP/ Wide World


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Resistance to ChangeResistance to Change

Direct Costs

Saving Face


Forces forForces forChangeChange

Fear of the Unknown

Breaking Routines

Incongruent Systems

Incongruent Team Dynamics


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Creating an Urgency for ChangeCreating an Urgency for Change

Need to motivate employees to change

Most difficult when organization is doing well

Must be real, not contrived


Customer-driven change

Adverse consequences for firm

Human element energizes employees


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Reducing Restraining Forces at UnileverReducing Restraining Forces at Unilever

Gary Calveley (right) brought in

team coaches to trainemployees throughout the

process of changing Unilever’s


Elida Faberge factory intoEurope’s best factory. A

theatrical production helped to

communicate the changes thatCalveley was trying to achieve

through coaching.

Dean Smith/The Camera Crew


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CommunicationCommunication

TrainingTrainingCoercionCoercion

Minimizing Resistance to ChangeMinimizing Resistance to Change


ResistanceResistanceto Changeto Change EmployeeEmployee

InvolvementInvolvement

StressStressManagementManagement

NegotiationNegotiation


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Refreezing the Desired ConditionsRefreezing the Desired Conditions

Creating organizational systems and team

dynamics to reinforce desired changes

alter rewards to reinforce new behaviors


new n orma on sys ems gu e new e av ors recalibrate and introduce feedback systems to

focus on new priorities


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Strategic Vision & Change AgentsStrategic Vision & Change Agents

Strategic Vision and Change

Need vision of desired future state

Minimizes employee fear of the unknown

Clarifies role perceptions


Change AgentsPossess knowledge and power to facilitate the

change effort

Usually internal change championNeed to be transformational leaders


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Conditions for Diffusing ChangeConditions for Diffusing Change

Successful pilot study

Favorable publicity

Top management support


Labor union involvement

Diffusion strategy described well

Pilot program people moved around


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Organization Development DefinedOrganization Development Defined

A planned system wide effort, managed fromthe top with the assistance of a change

a ent that uses behavioral science


knowledge to improve organizational

effectiveness.


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EstablishEstablishClientClient--

ConsultantConsultantRelationsRelations

Action Research ProcessAction Research Process


DisengageDisengage

Consultant’sConsultant’sServicesServices

Need forNeed forChangeChange

IntroduceIntroduceChangeChange StabilizeStabilizeChangeChange


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OrganizationParallel LearningStructure

Parallel Learning StructuresParallel Learning Structures



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Appreciative Inquiry at Hunter DouglasAppreciative Inquiry at Hunter Douglas

The Hunter Douglas Window

Fashions Division in Coloradorelied on appreciative inquiry as

well as a search conference to


create a collective vision, re-instill a sense of community

among employees, and build

leadership within the company.Courtesy of Amanda Trotsen-Bloom


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What is Appreciative Inquiry?What is Appreciative Inquiry?

Directs the group’s attention

away from its own problemsand focuses participants on

the group’s potential and


positive elements.

Reframes relationships

around the positive rather

than being problem orientedCourtesy of Amanda Trotsen-Bloom


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DiscoveryDiscovery DreamingDreaming

DesigningDesigning

DeliveringDelivering

Appreciative Inquiry ProcessAppreciative Inquiry Process


DiscoveringDiscoveringthe best ofthe best of“what is”“what is”

ideas aboutideas about“what might“what might

be”be”

dialoguedialogueabout “whatabout “what

should be”should be”

objectivesobjectivesabout “whatabout “what

will be”will be”


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Organization Development ConcernsOrganization Development Concerns

Cross-Cultural Concerns

Linear and open conflict assumptionsdifferent from values in some cultures


Ethical ConcernsManagement power

Employee privacy rights

Employee self-esteemConsultant’s role


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OrganizationalOrganizationalOrganizationalOrganizational

C H A P T E RC H A P T E R

1616


Change andChange andDevelopmentDevelopmentChange andChange andDevelopmentDevelopment

plo slide chapter 16 organizational change and development

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