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.
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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
Internal change agents are normally used to work on long term outcome changes. They have relationships built with many people from different departments of the organization. Internal agents have the current vision and what’s expected for the future. They have knowledge of how the systems currently work and what’s expected later as technology change. They understand the direction the organization is headed in and what support is needed to get there. Internal change agents
The first step in driving the necessary change within the organization is to secure an outside consultant to serve as a change agent. The change agent will facilitate and guide the organizational development (OD) through process consultation intervention. In this process, it will be necessary to identify sources of resistance through Force field analysis. Once the sources are identified, one-on-one meetings and group meetings will be conducted to educate the employees on the changes and the reasons why change is necessary. This step will find the management team working to re-define the vision of the organization. As part of motivating the
The first step in driving the necessary change within the organization is to secure an outside consultant to serve as a change agent. The change agent will facilitate and guide the organizational development (OD) through process consultation intervention. In this process, it will be necessary to identify sources of resistance through Force field analysis. Once the sources are identified, one-on-one meetings and group meetings will be conducted to educate the employees on the changes and the reasons why change is necessary. This step will find the management team working to re-define the vision of the organization. As part of
Action: This stage involves the actual change from one organisation state to another. It may include installing new methods and procedures, reorganising structures and work designs, and reinforcing new behaviour. This stage may also take a long period to reach the ideal outcome. Although external change agents are often viewed as professional and has more credibility, internal change agents have the advantage of the sense of ownership to the change. Internal change agents are viewed as part of the organisation and fellow employee will trust them and will result in a smoother transition period.
The factors of organizational change are those who, for various reasons, an organization can identify the need for change, these are: technological, structural, personnel and cultural factor. In today's world of organizations, characterized by globalization, the power of customers and the avalanche of information, these have to be in a permanent process of change for continuous improvement. Are structural, technological and cultural factors staff of those organizations has to act on them and thus achieve adaptation and / or probation they need.
Managing Change: The Art of Balancing“ by Jeanie Daniel Duck [1] came out in the Harvard Business Review in November 1993. It is an influential article, one that has been cited 437 times until date. Duck draws upon her years of experience as a Vice President in the Chicago Office of the Boston Consulting Group and of running her own consulting firm that focused on the emotional and behavioral impact of change on corporate performance. She can be safely called both, a management consultant as well as an organization development consultant. Presented below is a summary and key points of the article supplemented by examples, views and facts gleaned from other sources as well.
option for change success. External and internal factors must be examined to determine the type of change agent (external vs. internal) that will best suit the needs of change.
1.1 Change management is described by Armstrong (1) as “the process of achieving the smooth implementation of change by planning and introducing it systematically taking into account the likelihood of it being resisted”. Change, the fundamental constant in any successful organisation, can be adaptive, reconstructive, revolutionary or evolutionary and can happen for a number of diverse reasons:
It is common knowledge by now that change is inevitable. It is everywhere around us. Change can be fun, for example when a new version of the iPhone comes out. However, when change affects what we do everyday, there usually is a lot of skepticism and resistance to change involved. Apple employees were sure to feel enormous pressure as the sales of iPhones skyrocketed. To implement change on an organizational scale it is always a good idea to have a framework for building upon. Using change models can guide leaders through organizational changes and help pave their way to the future. This article discusses and
Changes that center focus on maintaining congruence are called incremental changes. One example of incremental change would be introducing reward systems to changing labor market conditions. Strategic changes are changes that involve the overall strategy of the organization. Strategic changes involve breaking the pattern of congruence and developing a whole new configuration for the organization. They include fundamental changes in the definition of the business, shifts of power, and alterations in culture. One example is when John Scully took over at Apple Computer for Steve Jobs. John Scully implemented a system wide strategic change for the organization by dealing with some of the issues discussed above. The second dimension of change deals with the external events surrounding the organization. Changes that are in response to an event are called reactive changes. Changes that are enforced in anticipation of external events are anticipatory changes.
Image number two is that of a Navigator; this change manager is seen as the heart of the management action and control is available, but some of the outcomes are out of their control. This change process unfolds through a series of multiple variables within the organization.
Phases of Emergent Versus Planned Change (1) Fine tuning and incremental change are usually also seen as emergent, ‘unfolding as it happens’. The organisation, an open system, engages ‘naturally’ in emergent change as it tries to maintain equilibrium with its changing environment.
Organizational change is usually triggered by relevant environment shift, either internal or external, that sensed by companies and leads to intentionally generated response (French, Bell & Zawacki, 2006). This paper will discuss several organization development models..
In addition to the models that explain the change process, the type of change that the organization is going through also plays a role. In their review of literature Gilley, McMillan & Gilley (2009) identified three types of change: transitional, transformational and developmental. Transitional changes are small changes, transformational are radical shifts and developmental are continuous changes. Goodstein and Burke (1991) see two different levels of change as well and call them fundamental, which is similar to the transformational change identified by Gilley et al. and fine-tuning which is similar to the transitional changes identified by Gilley et al. Likewise, Weick and Quinn (1999), basing their work on
Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.