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Managing Change

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18 MANAGING CHANGE

Chapter Scan

Organizations have to keep pace with current issues related to quality, technology, diversity, globalization, and ethics. This requires managing both change and resistance to change. All organizations experience external and internal forces for change. There are numerous organization development interventions available to managers. Diagnosis and needs analysis are essential first steps in any change management effort.

LEARNING OBJECTIVES

After reading this chapter, you should be able to do the following: 1. Identify the major external and internal forces for change in organizations. 2. Define the terms incremental change, strategic change, transformational change, and change agent. 3. …show more content…

B. Internal Forces Internal forces for change include things like declining effectiveness, crises (e.g., strikes, resignations, or major accidents), changes in employee expectations, and changes in the work climate.

III. CHANGE IS INEVITABLE A. The Scope of Change Change may take one of three forms. Incremental change is relatively small in scope, and as such, results in small improvements. Strategic change is a larger scale approach that is similar in magnitude to a restructuring effort. Transformational change moves the organization toward a radically different, and sometimes, unknown, future state. B. The Change Agent’s Role A change agent is an individual or group that undertakes the task of introducing and managing a change in an organization. Change agents can be either internal or external, and both have advantages and disadvantages. Internal change agents know the past history of the organization, its political system, and its culture, but may be too close to be objective or may not have the trust of coworkers. External change agents may have a greater ability to be objective and impartial, but possess limited information about the organization and may be view with suspicion. IV. THE PROCESS OF CHANGE IN ORGANIZATIONS A. Resistance to Change

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